In December 2025, the insurance sector experienced fluctuations but ultimately strengthened. Ping An Insurance witnessed a remarkable surge of over 4%, propelling it to a new high not seen since April 2021. Among the leading performers were China Pacific Insurance and New China Life Insurance. On the regulatory news front, the National Financial Regulatory Administration made a significant adjustment by lowering the risk factors associated with insurance companies' investments. Specifically, this applied to investments in constituents of the CSI 300 Index, constituents of the CSI Dividend Low Volatility 100 Index, and stocks listed on the STAR Market that have been held for over two years. This strategic move facilitated the release of long-term funds, invigorated market activity, and provided a substantial boost to large-cap blue-chip stocks and high-dividend stocks. Consequently, it drove the valuation repair process within the insurance sector.