【Insurance Stock Analysis】Ping An Insurance rose 0.7% after earnings, China Life stabilized after sharp decline yesterday. Analysis: Investment losses dragged down performance, which of the two insurance stocks is better?

Ping An Insurance （02318） After the release of its results, the share price first fell and then rebounded by about 0.7%. In the fourth quarter of last year, Ping An recorded investment losses, and its quarterly net profit fell back 74%. China Life （02628） The previous quarter saw a loss of more than 10 billion yuan, and after the share price plunged by more than 8% on Thursday, it steadied slightly and rose by about 0.2% on Friday.

Yin Yuan Shichuang’s family office’s Hong Kong First Vice President, Huang Weihao, said on this newspaper’s video program that China Life’s sharp drop the day before was because it recorded a large loss in the fourth quarter, far worse than market expectations, while Ping An still reported a profit. “The investment side is a bit so-so, but in the fourth quarter it’s still making money. Even though it fell sharply, relatively speaking it was controlled better.” He added that Ping An’s business structure is more diversified, with other financial businesses such as banking and securities. “To some extent, it helps offset losses with gains.”

He said that Ping An’s share price is still in a downward trend. Unless it quickly recaptures levels above the 10-day moving average, there is a chance it will retest the low area. Pay attention to the short-term technical support level at 57.1 yuan. If it does not break below, it would first trade sideways around there. He recommends waiting until the valuation becomes more reasonable before considering deploying funds. For the long term, his outlook remains positive; he is optimistic about this year’s performance of China A-shares and the prospects for the insurance industry.

Huang Weihao believes that because China Life’s results were below expectations, the sharp drop in its share price the day before was a reasonable reaction. Since it had accumulated a lot of gains beforehand, he expects the near-term trend to remain choppy. But he believes the company’s investment loss in the previous quarter was just a single-quarter fluctuation. Its long-term fundamentals are solid, and among the two major domestic insurers, he has always preferred China Life. If the share price falls back to below 24 yuan, it would be even more attractive, and investors could consider accumulating for the medium to long term.

		Finance Hot Talk
	





	China’s auto sales win the top spot as the “world No. 1” for the first time—will high oil prices help electric vehicles go overseas?