According to Zhitong Finance APP, domestic insurance stocks continued their recent decline. As of the time of writing, China Life Insurance (02628) fell 4.73%, trading at HKD 28.62; China Pacific Insurance (02601) dropped 3.55%, trading at HKD 33.12; New China Life Insurance (01336) declined 3.35%, trading at HKD 52; and PICC Property (01339) slipped 1.74%, trading at HKD 6.23.

On the news front, JPMorgan issued a research report stating that domestic insurance stocks underperformed the broader market after the Spring Festival, as major insurers have not yet announced positive profit guidance. The report pointed out that unless the annual net profit change exceeds 50%, insurers are not required to issue profit guidance. The bank does not believe that the lack of positive profit guidance represents an earnings risk for this quarter. Notably, the market consensus forecast for fiscal year 2026 net profits already indicates a 9% year-on-year decrease, leading the bank to believe that the risk of further downward revisions to the current consensus is limited.

Open Source Securities released a research report stating that insurance H-shares and A-share benchmarks underwent significant adjustments around the Spring Festival holiday. In addition to a high base effect caused by the insurance sector’s early-year rally (driven by the ‘opening red’ phenomenon and bull market expectations), concerns over AI impacts (potential substitution of distribution channels such as insurance intermediaries; potential disruptions to white-collar employment and the economy) have negatively weighed on the sector. The firm believes that concerns about AI impacts are pressuring the insurance sector, with the pullback presenting an opportunity for strategic positioning.