＜Research＞JPM Foresees CN Insurers' Interim Div. to Become ST Catalyst; Top Picks Ping An, China Life

　　PICC GROUP (01339.HK) -0.030 (-1.128%) Short selling $2.48M; Ratio 5.857% and PICC P&C (02328.HK) -0.160 (-1.618%) Short selling $6.35M; Ratio 3.222% declared interim dividends for this year, JP Morgan said. PICC GROUP is directly owned by the Chinese government, with the Ministry of Finance taking a 60.84% stake and the National Council for Social Security Fund taking 12.68%. As such, it seems reasonable to JP Morgan to expect CHINA LIFE (02628.HK) -0.260 (-2.285%) Short selling $43.69M; Ratio 23.748% to take a similar step.

　　The broker said faster-than-expected recovery in the life insurance, strengthened capital management policies and recovering product margins will offset the potential risk of falling debt rates. The broker expected interim dividends to be a short-term catalyst for the Chinese insurers. Ping An A and H shares (02318.HK) -0.950 (-2.582%) Short selling $212.98M; Ratio 26.333% and China Life H shares (02628.HK) -0.260 (-2.285%) Short selling $43.69M; Ratio 23.748% are the top picks among the brokers Overweight-rated Chinese insurers.

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　　The broker estimated that the average dividend yield of Hong Kong-listed Chinese insurers will reach 6.4% this year. That said, except for Ping An, no insurer has given detailed guidance about three-year future shareholder returns, which could be potential upside risk around interim results.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-06-27 12:25.)

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