--- title: "Understanding the Market | Domestic insurance stocks fell across the board, with CPIC plunging over 7%. Institutions indicate that short-term liquidity affects the valuation of insurance stocks" type: "News" locale: "en" url: "https://longbridge.com/en/news/290153315.md" description: "Insurance stocks fell across the board. As of the time of writing, China Pacific Insurance (CPIC) dropped 7.26% to HKD 28.36; China Life fell 6.53% to HKD 28.04; New China Life Insurance (NCI) decreased 5.26% to HKD 49.36; and PICC P&C declined 4.12% to HKD 14.91. On the news front, since the beginning of this year, market sentiment has continued to tilt towards AI themes and certain cyclical sectors, with funds switching from low-volatility, defensive insurance sectors to high-elasticity tracks. Huachuang Securities pointed out that since April, equity markets have warmed up, but insurance may not have shown significant improvement due to short-term funding effects. We expect that after the current positions are exhausted, favorable equity conditions may help push insurance stocks to \"catch up.\" Dongfang Securities noted that since 2026, the insurance sector has consistently underperformed the market. In the first quarter, the stock prices of major listed insurance companies were generally under pressure. Since April, the equity market has seen some recovery, but the rebound in the insurance sector remains weaker than that of the CSI 300. We believe that the current market pricing of insurance stocks is still more focused on the realization of the profit and loss statement rather than purely on improvements in the liability side. Pressured investment returns, fluctuations in fair value changes, and increased credit impairment disturbances are the main factors suppressing the valuation recovery of the sector" datetime: "2026-06-18T06:56:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/290153315.md) - [en](https://longbridge.com/en/news/290153315.md) - [zh-HK](https://longbridge.com/zh-HK/news/290153315.md) --- # Understanding the Market | Domestic insurance stocks fell across the board, with CPIC plunging over 7%. Institutions indicate that short-term liquidity affects the valuation of insurance stocks According to Zhitong Finance APP, insurance stocks have all fallen, as of the time of publication, China Pacific Insurance (02601) is down 7.26%, trading at HKD 28.36; China Life (02628) is down 6.53%, trading at HKD 28.04; New China Life Insurance (01336) is down 5.26%, trading at HKD 49.36; PICC P&C (02328) is down 4.12%, trading at HKD 14.91. In terms of news, since the beginning of this year, the market style has continuously tilted towards AI themes and certain cyclical sectors, with funds switching from low-volatility, defensive insurance sectors to high-elasticity tracks. Huachuang Securities pointed out that since April, equity markets have warmed up, but insurance may not have shown significant improvement due to short-term funding effects. We expect that after the current positions are exhausted, favorable equity conditions may help boost insurance "catch-up." Dongfang Securities noted that since 2026, the insurance sector has continuously underperformed the market. In the first quarter, the stock prices of major listed insurance companies were generally under pressure. Since April, the equity market has seen some recovery, but the rebound in the insurance sector is still weaker than that of the CSI 300. We believe that the current market pricing of insurance stocks is still more focused on the realization of the income statement rather than purely on improvements in the liability side. 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