Daily Investment Strategy
Recommended Stock：PAI（2318）
Recently, the Ministry of Human Resources and Social Security, the Ministry of Finance, the State Taxation Administration, the Financial Regulatory Administration, and the China Securities Regulatory Commission issued a notice regarding the comprehensive implementation of the individual pension system. Starting December 15, 2024, China's private retirement pension plan will officially be promoted nationwide. CN insurance companies like Ping An Insurance may benefit from the policy. In 9M24, the new business value for life and health insurance reached RMB35.1bn, a yoy increase of 34.1%. Notably, the new business value from the agent channel grew by 31.6%, and the per agent new business value increased by 54.7%, indicating improvement in productivity. Overall, the core life insurance business continues to recover. The investment value of PAI remains. Target price: $57.5.
Growth in new medium- and long-term loans to residents accelerated in November
In November, according to data that had been released by the PBOC, total new lending in the mainland credit market reached RMb580bn, which fell short of market expectations of RMb950bn. Medium- to long-term household loans rose by RMb66.9bn, marking the second consecutive month of yoy increments after a RMb39.3bn increase in October; this acceleration had not only highlighted the close correlation between shifts in medium- to long-term household lending and homebuying intentions, but also underscored a discernible improvement in November’s long-term household loans relative to October, largely attributable to a stabilization and rebound in personal mortgages that had coincided with marginal improvements in property market transactions. Notably, November’s yoy growth in the floor area of commodity housing sales across 30 major cities had turned from negative to positive, while the first week of December still managed to register yoy growth. Coupled with earlier statements from the Ministry of Finance, which had affirmed that the following year’s fiscal policies would become more proactive, these developments collectively pointed toward the anticipation that the central government would continue to introduce supportive measures for the mainland’s property sector recovery, ultimately transmitting a positive wealth effect into domestic demand.
Last Friday, the Hong Kong Stock Connect recorded a net inflow of HK$14.31bn, with the Tracker Fund of Hong Kong (2800) receiving the largest share at HK$3.03bn, followed by Alibaba (9988); meanwhile, Meituan (3690) registered the most significant net outflow, amounting to HK$500mn, trailed by Xiaomi (1810).
Wen Kit Kenny 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/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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