fantasyroulette| Insurance funds successively raise A-shares: the return of external enthusiasm and internal stability

The enthusiasm of A shares is warming up, but the style is becoming more and more calm.

Since the beginning of 2024, the insurance capital has been sold one after another, and the A-share listed companies have raised their licenses four times, which has reached the number of times in 2022.

Industry insiders believe that listed companies with dangerous assets are long-term investments based on their own allocation needs and the allocation value of listed companies. In addition, from the perspective of accounting standards, listed companies with insurance capital can smooth the fluctuation of profits.

Behind the rebound in the popularity of raising cards, the style of raising cards with dangerous capital has stabilized. The field of licensing has changed from excessive concentration to a wider range, involving industries such as infrastructure, information, environmental protection and new energy; the sources of funds are more diversified and are no longer related to universal insurance accounts, mostly from "self-owned funds" or "insurance liability reserves".

Industry insiders believe that the recent meeting of the political Bureau of the CPC Central Committee proposed to "strengthen patient capital," and the new "National Nine articles" also mentioned guiding dangerous capital to enter the market, and it is predicted that dangerous capital will still increase equity investment in the second half of the year, among which high dividend, undervalued, low volatility, and high ROE assets will be more popular.

Sell A shares frequently

Following the listing of Wuxi Bank at the beginning of this year, Great Wall Life recently made another move, listing two listed companies, Jiangnan Water and Chengfa Environment.

On May 17, Jiangnan Water and Chengfa Environment successively disclosed that Great Wall Life increased its stake in the company through the secondary market. As of May 17, Great Wall Life held 4676 of each of the two companies.Fantasyroulette.170,000 shares and 32.1043 million shares, accounting for 5.0001% and 5.0001% of the total share capital of the company, reaching the licensing line.

The relevant person in charge of Great Wall Life responded that Great Wall Life based on its firm confidence in the future development prospects of Jiangnan water and urban development environment, as well as its recognition of its leading position in the industry, by raising its license to become one of the important shareholders of listed companies, can not only provide long-term and stable financial support for listed companies, stabilize their market prices, but also effectively alleviate the pressure of their own asset allocation. Reflect the important functions of financial services entities.

In fact, Great Wall Life is not the first listed company to be listed this year. As early as January 4, Zijin Insurance issued a notice saying that Zijin Insurance bought Huaguang Huaneng shares through an agreement transfer, accounting for 5.0012% of Huaguang Huaneng A-share capital, triggering a license.

In addition, at the end of 2023, Xinhua Insurance and China Life issued an announcement that they planned to jointly invest 25 billion yuan to set up a private equity company. At the same time, Xinhua assets and Guoshou assets jointly contributed 5 million yuan to jointly set up a fund manager company.

Xinhua Insurance said the move is to further increase long-term investment assets in line with the company's investment strategy, optimize the matching of assets and liabilities of insurance funds, and improve the efficiency of the use of funds. China Life said that the fund intends to invest in high-quality listed companies with good corporate governance and sound operation, invest in accordance with the market-oriented principle, grasp the opportunity to build positions according to the market situation, and dynamically optimize the strategy.

"in a low interest rate environment, increasing the allocation of equity assets and further promoting the development of equity investment is an important way to use insurance funds in the future. Listed companies with sound operations and high dividends are expected to be favored." Industry analysts said.

Bo Wenxi, vice chairman of the China Enterprise Capital Alliance, has also said that listed companies with insurance assets have been listed frequently in the past two years, on the one hand, due to the increased demand for high-quality assets by insurance companies, and on the other hand, it also shows the market's recognition of the ability to invest in risk capital.

Enthusiasm is increased but style is stable.

In retrospect, insurance capital was once an active member of the A-share market, and a certain insurance company increased its stake in a listed bank 12 times in a row in the two months before and after the beginning of the year in 2015.

However, as the regulation issued a number of policies to guide insurance to return to the source of protection in 2016, radical institutions were stopped from investing in A-share stocks or were ordered to stop related business, and the risky capital that once wantonly entered the A-share market gradually "calmed down."

Even, there is a "downturn" in 2021. According to incomplete statistics, there are five times in total in 2021 and 2022, of which two are passive ones.

But by 2023, with the positive policy and the active capital market, the risk capital tends to return to the A-share market, and the risk capital has been raised 9 times in 2023. Since the beginning of the year in 2024, listed companies with risky assets have been listed for four times.

Nowadays, the style and field of dangerous capital lifting has also become more calm and scattered while the dangerous capital raising card has warmed up.

In the early years, the main objects of insurance investment raising and increasing holdings were mainly concentrated in the real estate industry, banking stocks, undervalued blue chips and so on. However, with the decline of market interest rates, the recession of the real estate industry and macro-policy control, the popularity of insurance capital to the real estate industry has gradually lost.

At present, the investment objects of returning to the A-share market are distributed in areas in line with the national strategic direction, such as infrastructure, information, environmental protection, new energy and so on.

Lin Xianping, secretary-general of the Institute of Culture and creativity of the City College of Zhejiang University, said that insurance companies attach importance to areas such as infrastructure and public utilities because these areas usually have stable cash flow and sustained growth potential. to be able to meet the demand for stable returns. In addition, areas such as infrastructure and public utilities usually have high investment value because they are usually supported and regulated by the government and the risk is relatively low.

meanwhile,FantasyrouletteHe added that with economic growth and inflationary pressure, the yield of traditional investment channels such as bonds is gradually falling, while areas such as infrastructure and public utilities usually have a higher rate of return on investment, thus attracting the attention of risky capital.

From the perspective of insurance companies, the diversification of investment in the industry will not only help insurance companies to give full play to their financial advantages and promote industrial upgrading, but also help to achieve the diversification of asset allocation, reduce investment risks and improve investment returns.

The change of "ammunition depot"

In terms of capital sources, in recent years, the sources of funds for the increase or listing of insurance capital have become more diversified, and the listing of insurance capital is no longer related to universal insurance accounts, but mostly from "own funds" or "insurance liability reserves" and so on.

For example, Great Wall Life bought A shares of Wuxi Bank in January this year from its own capital account. When Taiping Life and Centennial Life increased their holdings in H shares, such as ICBC and Zhejiang Merchant Bank, respectively, the main source of capital was insurance liability reserves.

In this regard, Lin Xianping believes that with the relaxation of regulatory policies, insurance companies have gradually withdrawn funds from universal insurance and turned to investment in their own funds, which provides more sources of funds for insurance funds to advertise. In addition, insurance companies are gradually realizing the risks and long-term value of listed companies, so they are more inclined to use their own funds for investment.

Zhou Di, an expert from the National Science and Technology Expert Library of the Ministry of Science and Technology, said that the change in the source of placards is a reflection of the insurance industry's gradual return to its source of protection. Insurance companies pay more attention to long-term stable profits and development and no longer excessively pursue short-term high returns and liquidity.

The recently held meeting of the Political Bureau of the CPC Central Committee proposed "strengthening patient capital", and the new "National Nine Articles" proposed to optimize the policy environment for insurance fund equity investment, implement and improve the performance evaluation methods of state-owned insurance companies, and better encourage long-term equity investment.

In September last year, in order to encourage and guide insurance companies to use more funds for long-term investment and guide insurance funds to support the stable and healthy development of the capital market, the State Financial Supervision Administration issued the "Notice on Optimizing the Regulatory Standards for the Solvency of Insurance Companies" stipulates that for insurance companies to invest in stocks of the Shanghai and Shenzhen 300 Index, the risk factor will be adjusted from 0.35 to 0.3; for investment in ordinary stocks listed on the Science and Technology Innovation Board, the risk factor will be adjusted from 0.45 to 0.4; For investments in publicly offered infrastructure securities investment funds (REITs) that are not penetrated, the risk factor is adjusted from 0.6 to 0.5.

According to market analysis, lowering the risk factor will improve the capital use efficiency of insurance companies. It also means that insurance companies can invest more funds in the capital market, further opening up space for insurance funds to enter the market, and is of certain significance to activating the capital market.

Industry insiders believe that under the influence of factors such as regulatory policy support and increased investment income from insurance funds, insurance funds are expected to increase equity investment.

Hu Xiang, a non-bank analyst at Soochow Securities, believes that under the new situation of domestic economic transformation and upgrading, deepening financial market reform, and moving down the long-term interest rate center, it is time for medium-and long-term funds represented by insurance funds to accelerate the development of equity investment. Insurance funds need to seek a balance between solvency adequacy ratios, investment income targets and financial goals of asset and liability matching.

The investment confidence index survey results released by the China Insurance Asset Management Association show that the fixed-income investment confidence index of the insurance asset management industry has risen for two consecutive quarters, and the equity investment confidence index has risen for three consecutive quarters.