The Zhitong Finance App learned that domestic insurance stocks fell collectively. As of press release, Xinhua Insurance (01336) fell 5.74% to HK$42.7; China Life (02628) fell 4.57% to HK$27.12; China Financial Insurance (02328) fell 2.47% to HK$13.83; and China Taibao (02601) fell 1.61% to HK$26.96.
According to the news, recent data updated by the World Meteorological Organization shows that between July and September 2026, El Niño is expected to increase rapidly. Cathay Pacific Haitong Securities pointed out that El Niño usually disrupts China's flood season precipitation, typhoon paths, floods, and phased droughts by altering subtropical high pressure, monsoon transportation, and precipitation zone distribution in the western Pacific, or has an impact on agricultural insurance, vehicle insurance, corporate financial insurance, and catastrophe-related compensation. The bank estimates that during the El Niño phase, financial insurance companies' COR and payout ratio performance were divided.
Notably, China Life Insurance announced that the company plans to invest 4.999 billion yuan to jointly establish a partnership with China Life Insurance Industry Investment Management Co., Ltd., and the partnership will focus on investing in semiconductor industry companies. The analysis points out that insurance funds naturally match the semiconductor industry in terms of time cycle. The insurance fund debt cycle has reached more than ten years, which is highly compatible with the characteristics of a long semiconductor R&D, factory construction, and industrialization cycle.