Hong Kong/China Insurance: Monthly Datapack: Southbound and Long-Only Positions in Insurers in June

Research evidence excerpt

Hong Kong/China Insurance: Monthly Datapack: Southbound and Long-Only Positions in Insurers in June

Update

July 15, 2026 10:19 AM GMT

Morgan Stanley Asia Limited+MHong Kong/China Insurance | Asia Pacific Rick Zhao

Equity Analyst

Monthly Datapack: Southbound Rick.Zhao@morganstanley.comRichard Xu, CFA +852 2239-7033

Richard.Xu@morganstanley.com +852 2848-6729

and Long-Only Positions in Chenqian Liu

Research Associate

Chenqian.Liu@morganstanley.com +852 3963-0359

Insurers in June

Key Takeaways

LO positions in Ping An fell MoM in a divergent equity market; AIA's LO positions

also dropped, likely reflecting concerns over its MCV business. Hong Kong/China Insurance

Asia Pacific

China Life's LO positions further recovered MoM on high earnings expectations. Industry View Attractive

PICC P&C's LO positions also improved, aided by appealing valuation.

Southbound inflows to PICC P&C continued in June and early July; AIA and PICC

Group also saw net inflows in June post the share price correction.

China Life saw southbound outflows in June after strong net inflows last month;

Ping An and CPIC also recorded net outflows.

We see appealing valuations amid less extreme market divergence in July and

expect healthy 1H26 results on solid fundamentals & strong investment results.

Southbound (SB): We see divergent southbound holdings as a share of total H-

shares across insurers in June and early July.

• Notably, PICC P&C's SB holdings continued to rise, up 1.1ppts MoM in June,

supported by its attractive dividend yield of ~6%, despite potential

catastrophe loss headwinds. PICC Group also saw a 0.3ppts increase in June.

• AIA's SB holdings recovered 0.2ppts MoM in June, vs. a 0.2ppts decline in

May. We believe investors were buying the dip following cross-border

concerns.