Central Bank: Firmly Safeguard Stable Operation of Stock, Bond, Foreign Exchange and Other Financial Markets; New Energy Vehicle Insurance Self-Pricing Coefficient Expansion Continues | Financial Morning Brief

| March 20, 2026, Friday |

NO.1 Central Bank: Firmly Maintain Stable Operation of Stock, Bond, and Foreign Exchange Markets

On March 18, the People’s Bank of China held an expanded meeting of its Party Committee. The meeting emphasized actively and prudently resolving financial risks in key areas. It called for maintaining a dynamic balance between economic growth, structural adjustments, and financial risk prevention at the macro level. Continued efforts to resolve debt risks in financing platforms. Adhering to market-oriented and rule-of-law principles, actively and prudently managing risks of small and medium financial institutions. Fully leveraging the macroprudential management and financial stability functions of the central bank, firmly maintaining the stable operation of stock, bond, and foreign exchange markets. Studying the establishment of liquidity support mechanisms for non-bank financial institutions under specific scenarios. Collaborating with relevant departments to continue crackdowns on illegal financial activities.

NO.2 Foreign Exchange Bureau: Improve Cross-Border Capital Flow Monitoring and Early Warning, Strengthen Macroprudential Management When Necessary

Recently, Zhu Hexiong, Secretary of the Party Leadership Group and Director of the State Administration of Foreign Exchange, presided over an expanded Party Committee meeting. The meeting emphasized better responding to external shocks and challenges under new circumstances. Strengthening sensitivity to changing situations, establishing bottom-line thinking, improving cross-border capital flow monitoring and early warning systems, and, when necessary, reinforcing macroprudential management. Further improving expectation management mechanisms to maintain the steady operation of the foreign exchange market. Enhancing the management of foreign exchange reserves to ensure the safety, liquidity, and preservation and appreciation of reserve assets.

NO.3 New Energy Vehicle Insurance Autonomous Pricing Coefficient Expanded Again

On March 19, the Daily Economic News learned from industry insiders that the autonomous pricing coefficient range for new energy vehicle insurance has been adjusted again, expanding from 0.6–1.4 to 0.55–1.45. This is the second expansion since September 2025, bringing the range very close to the ultimate goal of 0.5–1.5.

Comment: The autonomous pricing coefficient for auto insurance is a factor that insurers adjust within a range based on vehicle risk, usage nature, and driver behavior, on top of the base premium. The range of the coefficient directly determines the pricing flexibility of insurers. The continuous expansion of this range often indicates that insurers can set more flexible prices, and that consumers’ insurance premiums will better match their risk levels, further reducing cross-subsidies from low-risk to high-risk customers.

NO.4 ZhongAn Online Releases 2025 Full-Year Results: Total Premiums Reached 35.7 Billion Yuan

On March 19, ZhongAn Online Property & Casualty Insurance Co., Ltd. announced its 2025 annual results, with total premiums of 35.735 billion yuan, a 6.9% increase year-over-year, maintaining its position as the eighth-largest property insurance company in China. Adjusted net profit attributable to the parent company reached 1.8 billion yuan, a surge of 198.3% year-over-year, marking the fifth consecutive year of underwriting profit.

Comment: Despite industry-wide challenges, ZhongAn’s sustained profitability and market expansion demonstrate its resilience and growth potential as an internet insurance provider.

NO.5 AIA Group: Total Weighted Premium Income Grew 14% in 2025

On March 19, AIA Group Limited announced its 2025 full-year results. Its wholly owned subsidiary, AIA Life, saw a 2% increase in new business value to $1.24 billion. Total weighted premium income increased by 14%. In 2025, AIA Life’s new agents grew by 14%, and active new agents increased by 20%.

Comment: AIA Life’s solid performance in 2025 reflects its competitive advantages and growth potential in the insurance market. The 14% increase in total weighted premiums and growth in new business value indicate positive progress in its life insurance business expansion.

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