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<Research>UBS: Higher Interest Rates & 'Anti-Involution' Policies Benefit CN Life Insurance Sector
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Based on China's recent anti-involution measures, the H-shares of China's life insurance sector has risen by 9.1% over the past four trading days, UBS released a research report saying.

The market believed that addressing overcapacity issues helps alleviate deflation risks, leading to higher commodity future prices and higher interest rates. Life insurers could typically benefit from higher interest rates in the long term.

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CHINA LIFE (02628.HK) spiked by 16% over the past 4 trading days, as some investors viewed CHINA LIFE as a proxy for China's interest rates, given its large market capitalization and business model focused on life insurance, the report noted.

Looking beyond the interest rate theme, the broker highlighted investment opportunities in PING AN (02318.HK) and CPIC (02601.HK), both having clear dividend policies and relatively attractive dividend yield.
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