Daily Investment Strategy
Daily focus：Ping An Insurance (2318)
In the first three quarters of 2025, the Group's overall operations improved significantly, achieving steady growth. Operating profit attributable to shareholders of the parent company reached RMB 116.2 billion, a year-on-year increase of 7.2%; net profit attributable to shareholders of the parent company was RMB 132.856 billion, a year-on-year increase of 11.5%. In particular, net profit in the third quarter saw a significant year-on-year increase of 45.4%, demonstrating strong growth momentum. Core insurance business performed strongly. The new business value of life and health insurance increased by 46.2% year-on-year, reaching RMB 35.7 billion. This growth was driven by multiple channels, with the agent channel seeing a 23.3% increase in new business value and the bancassurance channel experiencing a substantial 170.9% increase. Property insurance business maintained stable operating performance, with the overall combined ratio improving by 0.8 percentage points year-on-year to 97.0%, and business quality continuing to improve.
The Fed announced a 25 basis point rate cut, but the roadmap of rate cuts unclear
Following the Fed's announcement, US stocks fluctuated, with the S&P 500 erasing its initial gains. Fed Chairman Powell emphasized that future decisions will be data dependence, suggesting a lower probability of a December rate cut. This move reflects a backdrop of robust economic expansion, slowing job growth but a low unemployment rate, and inflation approaching the 2% target. This decision, the second rate cut this year, aims to support the labor market and maintain price stability, but it has triggered concerns about a shift in monetary policy, leading to a stronger dollar and a stock market decline. For investors, this policy shift means lower borrowing costs in the short term, which should help businesses expand. However, a slower pace of rate cuts could suppress stock market gains and increase economic uncertainty.
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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