China Life low 2.5% premium income trapped in strategic adjustment

A few days ago, together with the parent company and the same company to buy 2.768 billion shares of the construction Bank (00939-HK) H shares of China Life, H shares this morning significantly lower 2.54% to HK $26.85, 732,000 shares. China Life A shares (601628-CN) are also down 1.72% to 23.49 yuan. The company's latest disclosure of operating data shows that in 1 of this year, the original premium income in April total of 126 billion yuan (the same as the same), a slight decline of 1.6%, less than the Q1 1.8% year-on-year increase, far worse than the entire industry in the first 4 months up to 9% growth. In April, the premium income was 22 billion yuan, which was reduced by 14.8% compared with the 13.41% decline in March.　　Comments suggest that the pressure on premium growth caused by China's life-structure adjustment is increasing or unfavourable to stock prices.　　Meanwhile, Chinese longevity chairman Chao said in the interest of both the company and the market, it may consider increasing the number of banking stocks and continue to invest in overseas markets under strict risk control, as the global financial crisis has reduced the volume of overseas financial institutions, providing Chinese insurance companies with opportunities to expand overseas markets. Dahua (UOB) issued a report saying that the purchase rating of the unit was maintained, with a target price of HK $31.3, which was 17% higher than the market price. The reduction in April of the company's premiums was mainly due to an adjustment in premiums (from bank insurance products to dividend products) and a higher base for the same period a year earlier. Only UOB that, although the next few months may continue to negative premiums, but the Chinese life insurance premiums to achieve growth full of confidence, that will have a positive impact on the long-term development of the company, because dividend-type insurance products than the products of the high profit margin, but also to the intrinsic value of a greater contribution.