Fitch: The risk factors for equity investments in the mainland may stimulate insurance companies to increase their Shareholding in Stocks.

The rating agency Fitch has stated that China's reduction of risk factors for Institutions' Private Equity investment may promote an increase in Institutions' Shareholding in Stocks. However, Private Equity investment could expose Institutions' profits to fluctuations in the stock market, potentially putting some Institutions' capital conditions under pressure. By the end of last year, the share of Private Equity investment (including Stocks and long-term equity investments) accounted for 15.3% of the investment assets of life insurance companies, while non-life insurance companies' Private Equity investment accounted for 13.5%. Fitch expects that under regulatory guidance and the continued low interest rates in China, the proportion of Private Equity investments by Institutions will continue to rise. However, Fitch believes that Institutions will consider their risk appetite and profit margins before changing their investment strategy.

AASTOCKS10:59

The Hang Seng Index rose by 681 points, with a turnover of 322.4 billion Hong Kong dollars, led by mobile and export-related stocks.

China and the U.S. agreed to mutually reduce tariffs for 90 days and cancel retaliatory tariffs, leading to a significant rise in the Hong Kong stock market. The Hang Seng Index opened 316 points higher and further increased after announcing relevant details in the afternoon, reaching a high of 23,685 points with an increase of 817 points, closing up 681 points or 3% at 23,549 points; the National Index rose 250 points or 3%, closing at 8,559 points; the Hang Seng TECH Index rose 267 points or 5.2%, closing at 5,447 points. The total market turnover for the day was 322.426 billion HKD.

AASTOCKSMay 12 16:33

Express News | The joint statement of the China-USA Geneva Economic and Trade Talks has been released.

BreakingsMay 12 15:00

The new stock "Chuanjie Tai Pharmaceutical" is considering listing in Hong Kong, raising 0.2 billion USD.

According to a report by Bloomberg, sources say that METiS Pharmaceuticals, which focuses on the development of AI drugs and delivery systems, is considering going public in Hong Kong, raising up to 0.2 billion dollars. It is reported that METiS Pharmaceuticals is collaborating with advisors on the IPO, which may take place before the end of this year, although the specific scale and timing may change. METiS Pharmaceuticals is headquartered in Hangzhou and has raised approximately 0.3 billion dollars since its establishment in 2020. Last year, the company announced the completion of a 0.1 billion dollar Series C financing led by CICC Capital and followed by CHINA TAIPING.

AASTOCKSMay 12 12:20

Hong Kong stocks are reacting; Mainland Insurance Companies collectively strengthen, with Ping An Insurance and China Life Insurance both rising over 2%.

On May 12, according to Gelonghui, the mainland insurance companies in the Hong Kong stock market collectively strengthened, among which CHINA TAIPING rose more than 3%, while New China Life Insurance, China Life Insurance, PICC GROUP, Ping An Insurance, and China Pacific Insurance all rose over 2%. In terms of news, after more than 7 months since the last 2024 "9.24", a package of financial support policies was announced again on May 7. This includes 10 monetary policies announced by central bank governor Pan Gongsheng, such as reserve requirement ratio and interest rate cuts, and the stabilization of the stock market and real estate sector represents clear bullish sentiment for the insurance industry. Analysts pointed out that the core of the central bank's "ten arrows" this time is to stabilize through measures such as reserve requirement ratio cuts.

Gelonghui FinanceMay 12 10:29

[Brokerage Focus] HTSC: Policies further promote the entry of insurance funds into the market, capital replenishment is on the agenda.

Jinwu Financial News | HTSC stated that on May 7, a banking regulatory authority and a financial association held a press conference, proposing multiple policies to stabilize market expectations and increase the entry of insurance funds into the market. Policies closely related to the Insurance Industry include that "capital replenishment for large insurance groups has been put on the agenda," a 10% reduction in the risk Indicators for insurance companies' stock investment solvency, and the approval of long-term stock investment pilot projects for insurance companies amounting to 60 billion yuan. Additionally, there are related policies supporting foreign trade and the Technology Industry in the insurance sector. The bank believes these policies will further promote the entry of insurance funds into the market and encourage insurance companies to invest for the long term. The mention of capital replenishment is more about taking precautions.

Jinwu Financial NewsMay 9 08:43