HK Stock Market Move | The stocks of domestic insurance companies collectively decline, with China Life Insurance (02628) falling by more than 4%. The investment performance is impacted by the fluctuation of the capital market in the fourth quarter.

Domestic insurance stocks collectively fell. As of press time, China Life Insurance (02628) fell by 4.14% to HK$32.92; The People's Insurance (01339) fell by 3.52% to HK$6.56; China Pacific Insurance (02601) fell by 2.41% to HK$37.26; New China Life Insurance (01336) fell by 2.1% to HK$58.15. Shenwan Hongyuan Group released a research report stating that there was a temporary volatility in the capital market in the fourth quarter of 2025. In addition, some insurance companies significantly increased their equity allocation in the secondary market in the second half of the year, which may put pressure on the fourth-quarter profit performance of listed insurance companies. The Group expects the net profit attributable to A-share listed insurance companies in 2025 to increase by 22.7% year-on-year to 426.4 billion yuan, with a decrease in growth rate compared to the first three quarters of 2025 by 10.9 percentage points. It is worth noting that the narrative of deposit migration continues to ferment. Rumors about the scale of deposits reaching maturity have skyrocketed from 1 trillion yuan to 7 trillion yuan, with the underlying expectation being for "faster fund reallocation," enough to reshape the supply and demand and pricing of different assets. The latest report by Bank of America suggests that 70%-80% of residents' time deposits will remain in the banking system after maturity, with only about 1 trillion yuan flowing into "non-deposit assets." If 500 billion yuan flows into insurance, it is enough to bring about "visible" elasticity in life insurance sales.