Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>JPM Won't Chase ST Rebound in Life Insurers, Favors PICC P&C
Recommend 27 Positive 55 Negative 25 |
||||
|
||||
|
JPMorgan opined in its research report that China's insurance industry should actively develop investment-linked products to solidify policy sustainability. As a result, the broker will not chase the short-term rebound in life insurers, and it expressed its preference for PICC P&C (02328.HK). China's State Council announced encouragement for state-owned insurers to allocate 30% of total premiums to the A-share market, according to the report. Considering the current low bond yield environment, the broker viewed adding asset allocation to stocks as understandable, but it emphasized three points: the scope of asset allocation, existing stock market allocation, and private insurers. Even though private insurers, including foreign joint ventures, may gradually increase stock allocation and trigger a deviation in their conservative asset-liability management perspective, the broker did not expect AIA (01299.HK) or PING AN (02318.HK) to quickly adopt this approach. Despite potential benefits, it still had concerns about risks, such as the growing correlation between balance sheets and A-share market volatility, and the increasing mismatch between assets (market risk) and liabilities (interest rate risk). AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
