JPMorgan released a research report initiating coverage on four Chinese small and mid-cap insurers, with CHINA RE (01508.HK)  +0.020 (+1.587%)    Short selling $1.68M; Ratio 6.198%   being its top pick, followed by ZA ONLINE (06060.HK)  +0.620 (+3.539%)    Short selling $107.28M; Ratio 6.721%   , both of which rated at Overweight, and rating CHINA TAIPING (00966.HK)  -0.020 (-0.127%)    Short selling $13.61M; Ratio 7.612%   and SUNSHINE INS (06963.HK)  +0.040 (+1.231%)    Short selling $1.47M; Ratio 2.287%   at Underweight.

JPMorgan remained positive on non-life insurers for the rest of the year. For life insurers, the broker saw value increase in large life insurers such as PING AN (02318.HK)  +1.000 (+2.012%)    Short selling $565.14M; Ratio 25.878%   and CHINA LIFE (02628.HK)  +0.100 (+0.548%)    Short selling $169.30M; Ratio 14.964%   .

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Investors may become more positively disposed to life insurers once interim dividends are announced in August, JPMorgan added. After conducting preliminary research on Chinese small and mid-cap insurers, JPMorgan's Overweight pecking order is PICC P&C (02328.HK)  -0.160 (-1.043%)    Short selling $80.71M; Ratio 23.316%   , CHINA RE, PING AN, ZA ONLINE and PICC GROUP (01339.HK)  -0.120 (-2.044%)    Short selling $49.20M; Ratio 14.604%   .

To be fair, since life insurers paid dividends based on their booked net profits at relatively stable dividend payout ratios, earnings volatility could pose a risk to dividend strategies, especially for insurers with more leveraged balance sheets, such as NCI (01336.HK)  +0.050 (+0.112%)    Short selling $133.67M; Ratio 18.905%   . JPMorgan believed that PING AN's H-shares will offer larger value, as its solid dividend policy offers a yield of up to 6%.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-08 16:25.)