JPM-GEMS FIRST TO MARKET Top Stories-20260108

H-listed life stocks to lead the way; Ping An-H/A are new top picks

China’s H-listed shares were the best-performing insurance stocks in APAC in 2025, including China Life-H’s 87% gain andPing An-H’s 42% (vs. HSI: 28%). We anticipate 2026 will be a year when major life insurers’ strong balance sheets, robustdistribution channels, and enhanced product mixes stay well rewarded. Ping An-H is our top OW with a new HK$100 PT,followed by China Life-H at HK$40. We also upgrade CPIC-H/A to OW from N, reflecting their fundamental recovery. However,we downgrade New China Life-H to N (from OW) after a strong rally in 2025, citing concerns over a widening reserve qualitygap versus major life insurers. We maintain our cautious stance on the non-life sector, keeping both PICC P&C and PICCGroup-H at N. We continue to prefer H over A, seeing a favourable risk-reward profile for H-listed stocks, and expect the H-Avaluation gap to narrow (Table 3) (link). Ping An-H looks compelling at 7x FY26E P/E with a sector-leading 5% yield.