JPMorgan issued a research report expressing significant concerns about the risk of earnings and dividend visibility in China's insurance sector over the next 12 months.

It is estimated that a 10% volatility in the A-share market would imply an average change of 47% in FY2025 net profit forecast. This suggests that the overall profit forecast may be at higher risk, implying a higher cost of capital for China's insurance sector.

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Therefore, JPMorgan lowered its target prices for all covered Chinese insurers by 7% on average, with its top pick being PING AN (02318.HK)  +0.150 (+0.326%)    Short selling $308.79M; Ratio 20.747%   , with rating at Overweight, followed by PICC P&C (02328.HK)  -0.100 (-0.715%)    Short selling $26.08M; Ratio 8.407%   , PICC GROUP (01339.HK)  -0.110 (-2.407%)    Short selling $35.09M; Ratio 16.816%   , CPIC (02601.HK)  +0.250 (+1.199%)    Short selling $11.40M; Ratio 3.658%   , CHINA LIFE (02628.HK)  +0.080 (+0.576%)    Short selling $44.62M; Ratio 9.545%   and NCI (01336.HK)  +0.200 (+0.735%)    Short selling $44.69M; Ratio 12.132%   .

JPMorgan's ratings and target prices for the H-shares of Chinese insurers are listed below:

Stock｜ Rating｜ Target Price (HKD)
PICC GROUP (01339.HK)  -0.110 (-2.407%)    Short selling $35.09M; Ratio 16.816%   ｜Overweight｜4.7->5.4
PICC P&C (02328.HK)  -0.100 (-0.715%)    Short selling $26.08M; Ratio 8.407%   ｜Overweight｜15->17
CHINA LIFE (02628.HK)  +0.080 (+0.576%)    Short selling $44.62M; Ratio 9.545%   ｜Underweight｜10-〉9
CPIC (02601.HK)  +0.250 (+1.199%)    Short selling $11.40M; Ratio 3.658%   ｜Neutral｜23-〉21
NCI (01336.HK)  +0.200 (+0.735%)    Short selling $44.69M; Ratio 12.132%   ｜Underweight｜13->12
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-04-29 16:25.)

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