Purchases of Hong Kong insurance policies, a key conduit for individuals to move capital out of mainland China, surged to a record high in the first half of the year as Chinese investors hunt for higher returns abroad amid a sluggish economy at home.

The value of annualised new premiums, an industry metric for the value of new insurance business, surged 39 per cent from a year earlier to HK$99bn (US$12.7bn) in the first six months of 2025, according to provisional data from the Hong Kong Insurance Authority.

A major driver of sales has historically been mainland Chinese crossing into the territory to buy Hong Kong dollar- and US dollar-denominated policies, which function as savings products and can offer higher returns than fixed-income products at home.