UBS Raises Target Price for CHINA LIFE (02628.HK) to $42, Positive Outlook on Bancassurance Channel Expansion and Deposit Migration Trends
UBS Target Price Increase: UBS has raised its target price for CHINA LIFE (02628.HK) from $29 to $42, maintaining a 'Buy' rating due to improved business growth prospects and favorable macro conditions.
Valuation Insights: The current valuation of CHINA LIFE is attractive, with a 12-month forward PEV of 0.5x and a PB ratio of 1.22x, indicating strong potential for investment.
Market Trends: UBS highlighted that CHINA LIFE stands to benefit significantly from the migration of deposits and the upward trend in the equity market in mainland China.
Growth Expectations: The broker anticipates strong new business growth for CHINA LIFE in January, particularly through the bancassurance channel.
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China Considering Special Government Bond Issuance to Inject RMB200 Billion into Major Insurers; Announcement Expected in First Quarter
Government Bond Issuance: China is planning to issue special government bonds worth around RMB200 billion (approximately USD29 billion) to restructure the capital of large insurers facing consolidation pressures.
Targeted Insurers: The funds raised will be directed towards state-owned enterprises such as CHINA LIFE, PICC GROUP, and CHINA TAIPING to strengthen their capital.
Future Plans: The bond issuance plan could be announced as early as the first quarter of 2026, with an additional RMB300 billion planned for major banks like ICBC and ABC.
Continuation of Support: This initiative follows last year's similar bond issuance aimed at helping large state-owned banks, including BANK OF CHINA and BANKCOMM, to supplement their capital.
UBS Raises Target Price for CHINA LIFE (02628.HK) to $42, Positive Outlook on Bancassurance Channel Expansion and Deposit Migration Trends
UBS Target Price Increase: UBS has raised its target price for CHINA LIFE (02628.HK) from $29 to $42, maintaining a 'Buy' rating due to improved business growth prospects and favorable macro conditions.
Valuation Insights: The current valuation of CHINA LIFE is attractive, with a 12-month forward PEV of 0.5x and a PB ratio of 1.22x, indicating strong potential for investment.
Market Trends: UBS highlighted that CHINA LIFE stands to benefit significantly from the migration of deposits and the upward trend in the equity market in mainland China.
Growth Expectations: The broker anticipates strong new business growth for CHINA LIFE in January, particularly through the bancassurance channel.
