Since the fourth quarter, insurance institutions have actively participated in the A-share market. The data show that whether it is the cumulative use of funds or the cumulative allocation of funds, the scale of funds invested by insurance funds since the fourth quarter is much higher than that in the third quarter. In terms of industry, the special equipment manufacturing industry is the most concerned by insurance funds.
Industry insiders believe that in the environment of steady progress of the registration system, it is the general trend for insurance funds to actively participate in the capital market. It can not only thicken their own investment income, but also give full play to their advantages of long-term investment. There is still room to improve the proportion of equity investment of insurance funds in the future.
actively participate in innovation
According to the data, as of the press time of the 13th, since the fourth quarter of this year, a total of 716 capital accounts of insurance institutions and products have participated in the innovation of the primary market. From the perspective of account types, insurance institutions including life insurance companies, property insurance companies, insurance asset management companies, insurance group companies and reinsurance companies participated in the opening of new insurance fund accounts in the fourth quarter.
The most frequently participated in the initial placement are China Pacific Insurance (Group) Co.Ltd(601601) property insurance – traditional – General insurance products, China Pacific Insurance (Group) Co.Ltd(601601) group, China Pacific Insurance (Group) Co.Ltd(601601) Life Insurance – dividend – individual dividend, 65 times respectively, tied for the first place.
From the perspective of the accumulated funds used by Daxin, the total funds used by insurance funds since the fourth quarter have been 7.85 trillion yuan. The China Pacific Insurance (Group) Co.Ltd(601601) group used the most funds, nearly 28.7 billion yuan, followed by China Pacific Insurance (Group) Co.Ltd(601601) property insurance – traditional – General insurance products and China Pacific Insurance (Group) Co.Ltd(601601) Life Insurance – dividend – individual dividend of 28.6 billion yuan respectively.
The reporter noted that the enthusiasm of insurance capital to participate in innovation in the fourth quarter is quite high. Up to now, the accumulated funds used by insurance capital to fight innovation have been higher than 7.54 trillion yuan in the third quarter, 6.76 trillion yuan in the second quarter and 5.6 trillion yuan in the first quarter.
Chen Li, director of Chuancai Securities Research Institute, believes that the high enthusiasm for new venture capital is mainly due to two factors. On the one hand, since 2020, the A-share market has gradually implemented the registration system. Under the implementation of the registration system on the science and innovation board and the gem, the number of new shares issued and the scale of fund-raising have maintained a rapid growth, promoting the high growth of the scale of insurance capital participating in placement; On the other hand, the growth of insurance premium income is weak and the interest rate of fixed income assets continues to decline. Therefore, insurance funds tend to pay more attention to the A-share market and strive to grasp structural opportunities.
large insurance enterprises have a high proportion of allocation
The enthusiasm for innovation is high, and the accumulated allocation of insurance capital also increases. From the perspective of the accumulated allocated investment funds of Daxin, since the fourth quarter, the accumulated allocation of insurance funds has been 4.12 billion yuan, higher than 2.361 billion yuan in the third quarter, and also higher than that in the first quarter (2.674 billion yuan) and the second quarter (2.368 billion yuan). Among them, TPL ranked first with 514 million yuan, and Qianhai life insurance and China Pacific Insurance (Group) Co.Ltd(601601) group ranked second and third respectively.
If we look at the initial allocation proportion, the allocation proportion of the above more than 700 capital accounts is roughly between 0.02% – 0.07%, with a median of 0.04%. The proportion of large insurance enterprises is higher. “In order to maintain the stability of stock prices in the future, enterprises and underwriters prefer to choose long-term investors. Therefore, the proportion of large-scale insurance enterprises is higher as a whole.” Chen Li said.
Judging from the preference for innovation in the fourth quarter, the science and innovation board is relatively more favored by insurance funds. In terms of industry, special equipment manufacturing industry is the most concerned by insurance capital, followed by chemical raw materials and chemical products manufacturing industry, pharmaceutical manufacturing industry, electrical machinery and equipment manufacturing industry, computer, communication and other electronic equipment manufacturing industry.
there is room for improvement in the proportion of equity investment
According to the data of China Banking and Insurance Regulatory Commission, by the end of October 2021, the balance of insurance fund utilization was about 22.58 trillion yuan. Among them, the investment in stocks and securities investment funds was 2.77 trillion yuan, an increase of 40.9 billion yuan compared with the previous month, accounting for 12.27% of the total balance of insurance capital.
Zhou Yanli, former vice chairman of the CIRC, said that the allocation proportion of insurance funds invested in the stock market in major developed countries and regions in the world is in the range of 17% to 32%. China is at a medium level and there is still much room for development in the future. From the perspective of cost-benefit, insurance funds to carry out stock investment can not only thicken their own investment income, but also give full play to their advantages of long-term investment, provide more long-term financial support for the capital market and optimize the investment structure of the stock market.
It is worth mentioning that recently, the CBRC has also issued several documents to add new channels for insurance funds to enter the market, such as approving insurance funds to invest in public REITs, allowing insurance funds to participate in securities lending business, etc.
Under the environment of improving the equity allocation of insurance funds, China Industrial Securities Co.Ltd(601377) analyst Zhang Qiyao believes that looking forward to next year, the premium income is expected to gradually hit the bottom and rise, driving the balance of insurance funds to stabilize, and the proportion of equity is stable. It is expected that insurance funds are expected to continue to flow into the stock market next year.
Chen Li said that there is a high possibility that the A-share market will still be dominated by structural market in the first quarter of next year. Driven by the “double carbon” policy, the prices of raw materials in the upper reaches remain high and are optimistic about the new energy sector. In addition, medical treatment, military industry and consumption also deserve attention.
(China Securities Journal)
