![\"Prudential](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/06\/ab08da00aff2826bf9618da965c28407.jpeg\")
Prudential lifted as UBS analyses China flow risks, with HSBC also lifted Proactive uses images sourced from Shutterstock <\/p>\n Prudential lifted as UBS analyses China flow risks, with HSBC also lifted Proactive uses images sourced from Shutterstock <\/p>\n
Prudential PLC (LSE:PRU)<\/a>\u00a0shares climbed 4% to 963p on Thursday morning after UBS said the insurer\u2019s recent sell-off already reflects a worst-case outcome from concerns over Chinese money flowing into Hong Kong insurance products.<\/p>\n The shares\u00a0recovered some of the losses suffered in recent sessions, with\u00a0the stock falling around 5% this week and down about 19% since regulatory measures affecting some mainland Chinese investment channels were announced on 22 May.<\/p>\n Since the\u00a0start of this month, when Chinese media reported that residents of mainland China are facing greater restrictions on opening offshore accounts at mainland branches of Hong Kong banks,\u00a0HSBC Holdings PLC (LSE:HSBA)<\/a>\u00a0and Standard Chartered PLC (LSE:STAN)<\/a>, two FTSE 100 banks also heavily focused on China, have fallen around 8% and 13% respectively.<\/p>\n The Swiss bank assessed the risk that Chinese authorities could tighten rules governing how mainland residents fund purchases of Hong Kong insurance savings products,\u00a0estimating that about 17% of Prudential\u2019s group new business profit is linked to mainland Chinese customers buying Hong Kong savings policies.<\/p>\n It modelled a scenario in which that business disappears entirely, alongside higher policy lapses and a lower valuation multiple.<\/p>\n Under those assumptions, UBS calculated potential downside of 11-18% from Prudential\u2019s valuation before the regulatory announcements in May.<\/p>\n However, the bank said the shares have already underperformed the European insurance sector by roughly that amount.<\/p>\n \u201cTherefore, we conclude that an extreme downside scenario appears to be priced in already,\u201d the analysts said, with a ‘buy’\u00a0rating and 1,470p price target reiterated, implying almost 59% upside from Wednesday\u2019s closing price of 926p.<\/p>\n UBS added that near-term sales could either weaken as customers wait for regulatory clarity or benefit if restrictions on offshore brokerage platforms divert mainland investors towards insurance products instead.<\/p>\n The key issue for investors remains whether Chinese authorities provide clearer guidance on the use of foreign exchange transfers for insurance savings products.<\/p>\n","protected":false},"excerpt":{"rendered":"Prudential lifted as UBS analyses China flow risks, with HSBC also lifted Proactive uses images sourced from Shutterstock…\n","protected":false},"author":2,"featured_media":81446,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[351,2847,42133,42134,42135,31519,223],"class_list":["post-81445","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-china","tag-hsbc","tag-mainland-chinese","tag-mainland-residents","tag-offshore-accounts","tag-prudential","tag-ubs"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116731160075889018","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/81445","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=81445"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/81445\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/81446"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=81445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=81445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=81445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}