0642 GMT - AIA Group's in-line 1H results and encouraging outlook for the Hong Kong-mainland China cross-border business don't warrant the drop in its shares, say Jefferies analysts in a note. The shares fell over 2% before paring losses to last trade 0.3% lower at 72.75 Hong Kong dollars. The insurer's 1H return on embedded value hit a record high, they note. AIA's chief executive confirmed confidence in its outlook and strong customer demand in Hong Kong during its earnings call, which Jefferies says reinforced its upbeat view on the company. While debate on cross-border flows remains present, "nothing has changed in more than two decades, and structural growth drivers are intact," Jefferies adds. Jefferies maintains its buy rating and HK$111.00 target price.