Insurance Stocks in Hong Kong Surge, New China Life Insurance and China Pacific Insurance Hit Historical Highs, China Taiping Rises Nearly 3%, and Yong An Insurance Up 3.5%

　Grid Daily, July 28th｜Hong Kong's Insurance Stocks Surge, with New China Life Insurance (601336) rising over 5% to a historical high, China Pacific Insurance (601628) rising 4.4%, Yong An Insurance rising 3.5%, China Taiping rising nearly 3%, and China People's Insurance, China Pacific (601318) and China Taiping (601601) rising nearly 2%. Moreover, China People's Insurance (601319) also broke a historical high.

　According to reports, Huatai Securities (601688) stated that on July 25th, the Insurance Industry Association released its 2Q2025 preliminary interest rate research value of 1.99%, triggering a mechanism to adjust the interest rate. The company expects traditional insurance/payout insurance interest rates or to be adjusted by 50/25 bps to 2.0%/1.75%. Currently, the insurance industry is facing relatively large differences in losses and risks, with continuous downward pressure on new single debt costs expected to alleviate the pressure.

　At the same time, an adjustment of interest rates is likely to improve the profitability and sales enthusiasm of new single policies. Since the beginning of the year, life insurance new singles have faced significant cost-revenue inversion pressures, with a 2.5% cost ratio, even if the interest rate on 30-year government bonds is only 1.8-1.9%, after traditional insurance interest rates are adjusted to 2.0%, it is expected to improve actual profitability and alleviate concerns about cost-revenue inversions among insurance companies, boosting agent enthusiasm and improving overall sales momentum.