On the evening of February 17, The People'S Insurance Company (Group) Of China Limited(601319) announced the implementation results of the share reduction plan of the social security foundation, the second largest shareholder.
As of February 15, at the end of the six-month reduction period, the social security foundation had reduced its holdings of The People'S Insurance Company (Group) Of China Limited(601319) A shares by about 708 million shares, reaching 80.02% of the reduction plan. The realized amount of this reduction is 3.486 billion yuan.
This reduction is The People'S Insurance Company (Group) Of China Limited(601319) the second round of reduction carried out by the social security foundation since the listing of A-Shares in November 2018. From July 2020 to January 2021, the social security foundation has reduced its holdings of The People'S Insurance Company (Group) Of China Limited(601319) A shares for one round. At that time, it reduced its holdings of 478 million shares and realized 3.2 billion yuan.
reducing 708 million shares to 80% of the reduction plan
The National Council of social security funds (hereinafter referred to as the "social security foundation") is the second largest shareholder of The People'S Insurance Company (Group) Of China Limited(601319) . The People'S Insurance Company (Group) Of China Limited(601319) announced the reduction plan on July 24, 2021, that is, the social security foundation plans to reduce the holdings of The People'S Insurance Company (Group) Of China Limited(601319) A shares with unlimited sales conditions by no more than 884 million shares within six months from August 16, 2021 to February 15, 2022.
Before the reduction, the social security foundation held The People'S Insurance Company (Group) Of China Limited(601319) 3324 million A-Shares with unlimited conditions, 2.990 billion A-Shares with limited conditions (the sales restriction period is until September 25, 2022) and 525 million H shares, with a total of 6.838 billion A-Shares and H shares, accounting for about 15.46% of the total number of issued shares of The People'S Insurance Company (Group) Of China Limited(601319) , and is the second largest shareholder of the company.
The latest announcement shows that as of February 15, the reduction period of the social security fund ended. Through the entrusted securities companies, the social security foundation has reduced about 708 million A-Shares of the company through centralized bidding, reaching 80.02% of the reduction plan, accounting for 1.6005% of the total issued share capital of The People'S Insurance Company (Group) Of China Limited(601319) .
The price range of this reduction is 4.61-5.43 yuan per share, and the total amount of reduction is 3.486 billion yuan.
After the reduction, the number of shares held by the social security foundation in The People'S Insurance Company (Group) Of China Limited(601319) decreased to 6.133 billion shares, and the shareholding ratio decreased to 13.87%.
two rounds of share reduction totaled more than 1.1 billion shares
This reduction is The People'S Insurance Company (Group) Of China Limited(601319) the second round of reduction plan issued by the social security foundation since the listing of A-Shares in November 2018. From July 2020 to January 2021, the social security foundation has reduced its holdings of The People'S Insurance Company (Group) Of China Limited(601319) A shares for one round. At that time, it was also planned to reduce its holdings of no more than 884 million shares, and finally implement the reduction of 478 million shares, with a shareholding reduction ratio of 1.08% and a realization of 3.224 billion yuan.
The two rounds of share reduction totaled more than 1.1 billion shares. Before and after the two rounds of reduction, the number of shares held by the social security foundation in The People'S Insurance Company (Group) Of China Limited(601319) decreased from 7.316 billion shares to 6.133 billion shares, and the shareholding ratio decreased from 16.54% to 13.87%, keeping the second largest shareholder unchanged.
According to the relevant announcement of The People'S Insurance Company (Group) Of China Limited(601319) , the reduction is due to the needs of the asset allocation and investment business of the social security foundation. It is a routine operation of its investment business, does not affect the business cooperation with the company, and has no significant impact on the company.
For the reduction of The People'S Insurance Company (Group) Of China Limited(601319) A shares held by the social security foundation, the reporter of the Securities Times has interviewed many people in the industry, such as insurance investors and industry researchers. According to the analysis of the interviewees, from the perspective of the social security foundation, as an institution managing the National People's reserve pension money, the social security foundation should try its best to do a good job in asset allocation and realize the long-term appreciation of funds. One direction shown in recent years is to appropriately reduce the allocation proportion of traditional industries and increase the allocation of emerging industries representing the future direction.
At the same time, the market of insurance stocks has been weak since last year. The valuation of The People'S Insurance Company (Group) Of China Limited(601319) A shares is higher than that of H shares, and the dividend yield is lower than that of H shares. This may also be the reason why the social security fund reduces its holdings of The People'S Insurance Company (Group) Of China Limited(601319) a shares. In fact, while reducing PICC A shares in the last round, the social security foundation is also increasing its shareholding in H shares of PICC group, which may reflect its consideration in this regard.
insurance unit welcome repair
Since the "return to a" in The People'S Insurance Company (Group) Of China Limited(601319) November 2018, the social security foundation has completed two rounds of six-month reduction, and the market environment of these two rounds of reduction is different.
When the first planned reduction was announced on July 9, 2020, it was at a time when the insurance shares continued to rise and the share price of The People'S Insurance Company (Group) Of China Limited(601319) A shares was high. At that time, the reduction was also considered to be intended to cool the overheated market. When the announcement on the reduction of holdings opened in July 2021 was released, the insurance stocks continued to be weak.
It is worth mentioning that since this year, the insurance sector has ushered in the repair market, with an overall increase of 3.08% as of February 17, which is in the middle and upper reaches of various industry sectors. Among them, The People'S Insurance Company (Group) Of China Limited(601319) A shares rose 2.13%.
