On August 20, NCI rose 3.03% in regular trading to HK$46.22, with turnover of HK$240 million, significantly outperforming the broader Life & Health Insurance sector which was mostly in decline.
On the news front, the National Financial Regulatory Administration on August 19 approved NCI to publicly issue up to RMB 10 billion in perpetual capital bonds in the interbank bond market, aimed at supplementing core Tier 2 capital and enhancing solvency to support sustained business development. This follows the company's successful completion of a separate RMB 10 billion perpetual bond issuance in late July at a 1.90% coupon rate.
The rebound also comes amid growing anticipation for the company's mid-year results, scheduled for board review on August 26 and formal release on August 27. NCI previously guided H1 attributable net profit of RMB 20.7 billion to RMB 23.7 billion, representing 40% to 60% year-over-year growth, driven by stronger investment capabilities and optimized asset allocation. Analysts have noted that insurance sector valuations remain at historical lows with adequate safety margins, supporting potential re-rating opportunities.
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