The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that Cathay Pacific Haitong (02611) recently outperformed its peers and was increased by Xinhua Insurance (01336) as an important driving factor; however, the bank is cautious about Cathay Pacific Haitong's upcoming results for the third quarter of 2026. Due to the company's relatively high exposure to stock investment, investment income may be more affected by recent market weakness than its peers. The bank maintains Cathay Pacific Haitong's H share “plus” rating and a target price of HK$18.

The bank pointed out that Xinhua Insurance disclosed on October 9 that it had increased Cathay Pacific Haitong's H share holdings to 20.24% as of September 29, which is equivalent to 4.04% of the total share capital. The bank estimates that between September 3 and 29, Xinhua Insurance's purchases accounted for about 34% of Cathay Pacific Haitong's H share turnover, and believes that there is still room to further increase its holdings to close to the 5% regulatory threshold. It is estimated that it can still buy about 170 million H shares, worth about HK$2.5 billion at the current price, or continue to provide technical support for near-end stock prices.

The bank believes that capital flow-driven buying may maintain near-term outperformance, but after the announcement of the third quarter results, profit-related concerns may have become a greater focus, and recent stock price performance may have subsided.

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