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Goldman Sachs tips a near-term growth slowdown may continue for China insurers. “Near-term challenges on premium growth may continue in 2011, due to the decline in the bancassurance business, difficulties in agent recruiting and retention, rising interest rates, and increased competition for insurance products from banks’ wealth management products.” It adds, life insurers may face margin pressure due to commission increases, but regulators may not raise the upper limit of pricing expense rates given they do not want to pass the increasing costs on to policyholders. It’s Neutral on China life insurers.

Morgan Stanley raises Bosideng’s (Hong Kong Stock Code 3998) target price to HK$2.80 from HK$2.70. Morgan Stanley says, its FY11 net profit (+18% on-year at CNY1.28 billion) was 2.6% above the house’s estimate, while the company proposed a final dividend of CNY0.068/share and a special dividend of CNY0.06/share. “The stock trades at 12X FY12 P/E, which we view as not attractive enough. A 7.0% dividend yield should lend some support to the price, but overall, net profit growth momentum will likely be unexciting over the next two years.” It keeps the stock at Equalweight. The stock bucks HSI’s 1.5% rise, drops 1.63% to HK$2.41.

China Resources Cement (Hong Kong stock code 1313) is up 2.8% at HK$7.41, outperforming peers such as Anhui Conch Cement ((Hong Kong stock code 0914) and China National Building Material (3323), after it announces that it will buy 40.6% stake in Inner Mongolia Mengxi Cement for CNY1.563 billion. The move marks Southern China-focused CR Cement’s first expansion into Inner Mongolia, and perhaps more importantly, it signifies its continued consolidation in China’s cement industry; such consolidation is likely to lead to better pricing power for the leading cement makers, resulting in better profits. Based on IMMC’s FY10 earnings of CNY448 million, the acquisition P/E is below 9X, which appears quite favorable vs CR Cement’s historic P/E of 23X. CR Cement’s volume at half-day of trade is HK$53.0 million, already more than Wednesday’s full-day volume.

China BYD A-Share opens at CNY22, which is 22% higher than its IPO at CNY18.  BYD H-Share, boosted by its A-Share, rises 4% at HK$24.75.

Meanwhile, Deutsche Bank cuts BYD’s FY11-13 EPS forecast and keeps its H-Share at Sell rating, with target slashed to HK$23.10 from HK$25.50.

Goldman Sachs cuts HSI 2011 target to 27,000 from 29,000 to reflect policy risks and tightening liquidity. Its top picks include SHK Properties (Hong Kong stock code 0016), Hang Seng Bank (0011), AIA (1299), Wharf (0004), Swire (0019), SJM (0880), Hutchison Whampos (0013) and Guangdon Investment (0270).

China Yurun Food (Hong Kong stock code 1068) bounces 5.5% to HK$20.45, on bargain-hunting after the stock took a 24.6% beating over Monday and Tuesday, amid market chatter that Muddy Waters, a short seller with a corporate registration in Hong Kong, may issue a negative report on the company. On a conference call with sell-side analysts and investors late Monday that was heard by Dow Jones Newswires, China Yurun’s Chairman Zhu Yicai said Muddy Waters hadn’t contacted the company and that he would consider boosting his stake in China Yurun. Earlier this month, Muddy Waters raised questions over Sino-Forest’s (TRE.T) books, resulting in a collapse in the Toronto-listed firm’s share price; Sino-Forest refuted suggestions its accounts were less-than-robust. Credit Suisse says “based on the current public information and assuming no accounting fraud, we maintain our Outperform rating and consider the stock oversold;” target price remains unchanged at HK$34.00. The house adds, potential catalysts include strong interim results (due Aug. 17) and “whether Yurun is able to prove itself.”