Mainland insurance stocks continued their recent downward trend. At the time of writing, CHINA LIFE (02628) fell 4.43% to HK$30.18; CPIC (02601) dropped 3.9% to HK$34.54; PICC P&C (02328) declined 2.53% to HK$15.78; and NCI (01336) decreased 2.35% to HK$53.95.

Kaiyuan Securities noted in a research report that insurance stocks listed in both Hong Kong and mainland China have seen significant adjustments around the Spring Festival holiday. Besides the high base effect from the sector's rally earlier in 2026 driven by strong early-year sales and bullish market expectations, concerns about AI disruption have also weighed negatively on the sector. These concerns include potential replacement of insurance intermediaries and other sales channels by AI, as well as potential impacts on white-collar employment and the broader economy. The institution believes that while AI-related worries are pressuring the insurance sector, the current pullback presents a buying opportunity.

Guotai Haitong Securities also observed that after the holiday market reopening, the non-bank financial sector, represented by insurance stocks, experienced a sharp decline. The firm attributes the significant drop partly to narratives suggesting that "AI-driven productivity gains could lead to long-term deflation," which acted as a major catalyst for the sell-off. However, Guotai Haitong Securities maintains that against the backdrop of stabilizing and rising interest rates, it remains optimistic about the valuation recovery opportunities for undervalued insurance stocks.