On June 15, China Life opened higher and moved higher. Less than an hour after the market opened, the stock price closed at the upper limit. As of press time, China Life’s closed orders reached 110,000, closing at 28.85 yuan, with a total market value of 816.4 billion.

article | Jinwei

The insurance giant has reached its daily limit.

html On June 15, China Life opened higher and moved higher. Less than an hour after opened , the stock price closed at the upper limit. As of press time, China Life closed orders reached 110,000 lots, closing at 28.85 yuan, with a total of 110,000 orders. Market value is 816.4 billion.

In addition to the daily limit of China Life, another insurance stock Tianmao Group hit the daily limit, Xinhua Insurance once exceeded the daily limit, and the entire insurance sector rose by 8%.

The last time China Life reached its daily limit was back in July 2020. At that time, brokerage stock led a bull market, and the indexes soared. China Life achieved a record of 2 daily limit increases in 3 days. Since then, China Life has made adjustments again. A new high, the stock price once rose to 50 yuan, and the total market value reached 1.45 trillion.

This time, China Life reached the daily limit again after two years, and 170,000 shareholders were delighted. What is the signal?

China Life, China's largest life insurance company , provides products and services such as life insurance, accident insurance and health insurance to individuals and groups in China, and also operates insurance asset management business.

In 2021, China Life achieved operating income of 858.5 billion, a year-on-year increase of 4.1%; net profit attributable to shareholders of the parent company was 50.9 billion, a year-on-year increase of 1.3%.

As of the end of 2021, China Life's embedded value reached 1,203.008 billion yuan, an increase of 12.2% from the end of 2020; its total assets reached 4.89 trillion yuan, an increase of 15% from the end of 2020.

In the first quarter of 2021, China Life achieved net profit attributable to the parent company of 15.178 billion yuan, a year-on-year decrease of 46.9%. In addition, China Life achieved premium income of RMB 315 billion in the first quarter.

As for the main reason for the decline in net profit, China Life said that due to the comprehensive impact of current equity market fluctuations and a high base in the same period in 2021, investment income declined year-on-year.

Judging from the news, China Life has made a lot of moves recently. One of its largest investments has been a large investment in a 100-billion-dollar traditional Chinese medicine giant: Yunnan Baiyao !

html On the evening of June 14, Yunnan Baiyao announced that the company's joint largest shareholder, Yunnan Provincial State-owned Equity Company, introduced China Life Asset Management Co., Ltd. (referred to as "China Life") to increase its capital by 9 billion yuan. After the capital increase is completed, China Life holds 24.79% stake in Yunnan Provincial State-owned Equity Company. The actual controller of Yunnan Baiyao is still the State-owned Assets Supervision and Administration Commission of Yunnan Province and has not changed.

It is understood that 9 billion yuan is only the initial investment fund. The equity plan is fully funded by the life insurance company of China Life Group , and is implemented by the asset management company. It is expected to reach a strategic investment of 20 billion yuan in the future.

Looking at the stock price, China Life has fallen from a high of 50 yuan in 2020 to the lowest point of 23 yuan this year, a loss of nearly half. It has been in a state of adjustment of around 25 yuan recently.

China Life's surge this time was mainly due to the market trends led by the brokerage and financial sectors. Market trading volume has continuously exceeded one trillion, giving large financial companies such as China Life a source of water. However, whether China Life can replicate the insurance market in 2020 mainly depends on the strength of this market.

Orient Securities released a research report that believes that at the current point in time, the insurance industry is in a period of deep transformation, and there are three main logical lines to maintain the industry's bullish rating: First, the fundamentals of life insurance have relatively improved, and value performance is expected to improve. Pay attention to structural adjustment and Regional recovery has brought life insurance leaders with an expected improvement in NBV (new business value); second, the Matthew effect of auto insurance has been strengthened, focusing on high-dividend industry leaders; third, attention has been paid to low equity investment multipliers and EV (embedded value) It is a high-quality target that is less sensitive to changes in investment yield and can avoid the risk of short-term market fluctuations.

In the standard China Life shareholder group, some investors said that it is rare for the insurance giant to hit the daily limit, and it will be included in the series in my lifetime. Some investors said that the insurance giant has reached its daily limit and a bull market is coming.

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