Credit Suisse said in a report that the valuations of NCI (01336.HK)  +0.100 (+0.285%)    Short selling $81.50M; Ratio 12.674%   and CHINA LIFE (02628.HK)  +0.200 (+0.746%)    Short selling $417.54M; Ratio 11.924%   have moved towards a reasonable level; but those of PING AN (02318.HK)  +0.250 (+0.391%)    Short selling $464.67M; Ratio 16.291%   and PICC GROUP (01339.HK)  +0.030 (+0.800%)    Short selling $19.12M; Ratio 4.332%   were a little lagging behind; in the uptrend of mainland insurance stocks continues, the valuation discount will keep narrowing.

In light of the better growth rate and outlook, the broker has decided to raise the target price of CHINA LIFE from $22.5 to $28, with rating kept at Neutral; NCI's target price was hiked to $35 with a Neutral rating; PICC GROUP's target price was raised from $3.75 to $4.5 and its rating was upgraded from Neutral to Outperform. As for other insurance stocks, the target prices of CPIC (02601.HK)  +0.150 (+0.464%)    Short selling $151.14M; Ratio 17.810%   , CHINA TAIPING (00966.HK)  -0.050 (-0.242%)    Short selling $6.61M; Ratio 2.466%   and PICC P&C (02328.HK)  +0.060 (+0.397%)    Short selling $117.27M; Ratio 25.554%   were set at $40, $26 and $17.15 respectively. All of the three stocks were rated Outperform.