Damo: Mainland's adjustment of risk factors for insurance-related businesses is expected to further benefit insurance stocks and stock markets, reaffirming their preference for Ping An China (02318)

The Zhitong Finance App learned that Morgan Stanley released a research report saying that the China General Administration of Financial Supervision issued a “Notice on Adjusting Business Risk Factors Related to Insurance Companies” to provide a 10% discount on eligible comprehensive stocks such as CSI300 and the Shanghai Stock Exchange Science and Technology Innovation Board. Damo believes that the measures may benefit insurance companies by reducing capital requirements and encourage insurance companies to participate in the stock market as long-term investors. This may also benefit the equity market, because insurance companies are major investors, and Damo expects that insurance funds will continue to flow into the stock market next year. The bank reiterated its preference for Ping An of China (02318), believing that the company could further benefit from the new regulatory system.