Insurance - China (H): Investor feedback: Insurers still regarded as market beta names, Ping An favored

Research evidence excerpt

Insurance - China (H): Investor feedback: Insurers still regarded as market beta names, Ping An favored

China Life: exposed more to ChiNext performance

China Life-H outperformed peers when the A-share market was strong, especially in Jan

and Apr when the ChiNext Board in China rallied. In our meetings with the company, it

also indicated that the fair value losses in Mar due to the market slump will be quickly

recovered if market rebounds. We remain positive on China Life-H as we expect the

ChiNext Board to receive more newly listed tech companies which could drive the

market and China Life’s investment performance in 2H26.

PICC P&C: recent catch up may be related to investment

We have Buy on PICC P&C and PICC Group-H. PICC P&C outperformed peers recently, up

by 10% in May so far, and PICC Group-H rose today as well. We reckon the performance

could be related to PICC’s early investment in one leading memory company in China

(CXMT -ChangXin Memory Tech). PICC’s investment gains can be boosted.

Exhibit 2: Stocks mentioned

Prices and ratings for stocks mentioned in the report

BofA Ticker Bloomberg ticker Company name Price Rating

CILJF 2628 HK China Life Insurance HK$ 29.76 B-1-7

CHPXF 2601 HK China Pacific Ins HK$ 32.94 C-1-7

NWWCF 1336 HK New China Life HK$ 49.14 C-3-7

PINXF 1339 HK PICC Group HK$ 5.26 B-1-7

PPCCF 2328 HK PICC P&C HK$ 15.43 B-1-7

PIAIF 2318 HK Ping An Insurance HK$ 61.85 B-1-7

Source: BofA Global Research

BofA GLOBAL RESEARCH

Price objective basis & risk

China Life Insurance (CILJF)

Our price objective for China Life is HK$33.1, which is our forecast appraisal value for

the company in 2026. The appraisal fair value is an actuarial forecast that includes the

net present value of profit from the in-force book, book value plus the projected value of