Amid market volatility and sector rotation in the first half of 2026, Ping An Insurance (2318) said investment returns remain stable, with its insurance funds portfolio exceeding 6.6 trillion yuan (HK$7.7 trillion) as of the end of June, up nearly 2 percent from the start of the year.
Michael Guo Xiaotao, Ping An’s co-chief executive and senior vice president, said the insurer remains optimistic about the resilience of the Chinese economy and capital market, and will maintain a balanced asset allocation with high-dividend stocks, complemented by growth stocks.
Guo noted that among growth stocks, the company is bullish on artificial intelligence, innovative drugs, energy, and resources sectors over the long term, and will participate in key investment projects in the AI industry.
He emphasized that Ping An will continue to invest in high-quality technology stocks in the secondary market, while also collaborating with private equity funds in the primary market to position itself early. For more mature and relatively stable mid-to-late-stage projects, the company will pursue bolder investment strategies, aiming to navigate market volatility through diversified allocation and provide stable earnings contributions.
Guo also said that mainland China may face a prolonged low-interest-rate environment, and the financial sector's interest margin may continue to narrow. However, the life insurance sector is entering a golden period, as relevant products can consistently provide guaranteed minimum returns over the long term in a low-rate environment.
He added that Ping An will shift from traditional products to developing more dividend-linked policies in the future, and will balance protection, savings, and retirement products, while optimizing policy tenors to continuously improve the new business value margin.
The State Taxation Administration recently said that mainland Chinese tax residents are required to pay taxes on their global income and that offshore insurance income is also subject to tax. Guo said this is not a new policy, nor is it specifically targeted at the Hong Kong insurance market.
Xie Yonglin, Ping An’s president and co-chief executive, said that the relevant tax requirements have not yet been extended to domestic insurance income. He noted the company has few offshore businesses and expects minimal impact. He highlighted opportunities in the Chinese life insurance market and said Ping An will develop diversified products to grow its life insurance business.
