China Life Insurance (2628.HK): Takeaways: Top Players‘ Edge Intact in Banca; New Capital Regime to Bolster Core Solvency Greatly

Research evidence excerpt

China Life Insurance (2628.HK): Takeaways: Top Players‘ Edge Intact in Banca; New Capital Regime to Bolster Core Solvency Greatly

Flash |

09 Jul 2026 11:20:44 ET │ 11 pages

China Life Insurance (2628.HK)

Takeaways: Top Players’ Edge Intact in Banca; New Capital Regime to

Bolster Core Solvency Greatly

CITI’S TAKE Buy

We hosted China Life’s 1H26 pre-blackout call, and we provide our key Catalyst Watch: Upside, expires 03-AUG-26

takeaways as below. Price (09 Jul 26 16:10) HK$28.90

Target price HK$36.00

Refined banca commission rationalization benefits policyholders, top players’ edge

Expected share priceintact – China Life noted that the regulator issued a refined set of banca commission 24.6%

returnrationalization rules on March 27th, which will be implemented from July 1st, with key

changes such as containing commission-like extra payments. Going into Jul26, China Expected dividend yield 3.2%

Life has launched new banca products, offering more attractive policyholder benefits Expected total return 27.8%

with return yield lifted by 10-20bps; and mgmt expected the mainstream approach Market Cap HK$816,850M

would be passing the commission savings to policyholders and hence banca product

US$104,149Mmargins would likely remain stable. In addition, it noted that top players’ advantages

would remain intact, as they can differentiate through a) value-added services such

as elderly care community services, trust services, etc., and b) decent fulfillment ratio

for par products backed by robust investment performance. In the longer run, mgmt

Michelle Ma, CFAACbelieved that bancassurance products will remain attractive given the low-interest

rate environment in China. +852-2501-2723

michelle.ma@citi.com

Amy Jy Chen