Since the beginning of this year, the A-share market has fluctuated violently and the style rotation has accelerated. As a large institutional investor, venture capital has significantly increased the frequency of research. According to the statistics of China stock market news choice, since this year, as of February 27, the total number of investigations on listed companies by insurance funds has reached 1161, double that of 559 in the same period last year.
For this year’s market trend, insurance funds generally believe that it is necessary to reduce investment expectations and look for structural opportunities. The investment director of insurance enterprises said that it is expected that the overall market will be “bearish” this year and will focus on finding the allocation value of oversold sectors.
Double the number of investigations within the year
Data show that during the year, insurance funds investigated listed companies 1161 times. Among them, pension insurance companies are the most active. Specifically, the Yangtze pension has been investigated 88 times, China Life Insurance Company Limited(601628) pension 83 times and Ping An pension 76 times. Other insurance funds with more research times include Guohua life insurance, up to 79 times.
Analysts believe that the most active research of pension insurance companies is related to their investment model. The investment management mode of pension is between long-term life insurance and fund. It has not only absolute income requirements, but also relative income requirements. It often ranks performance regularly, and its equity adjustment strategy frequency is relatively high.
In addition to pension insurance companies, the research frequency of other insurance capital institutions on A-Shares is significantly faster than last year. “In the past two years, the market has obvious investment lines. It is more difficult to select shares this year. More in-depth research is needed to deepen exchanges with listed companies.” The head of equity investment of a large insurance asset management company told reporters.
According to the above-mentioned persons, since this year, the share prices of hot sectors such as new energy have experienced a large pullback. Although we are still optimistic about the long-term investment value of the new energy track, we must diversify the configuration. Before that, research and research are essential links.
“There is a demand for position adjustment this year. At the same time, it is possible to choose an opportunity to strengthen the allocation of equity assets. There must be sufficient research before position adjustment or position establishment, but research does not mean investment.” The person in charge of investment of another insurance enterprise told reporters.
banking, infrastructure and other sectors are favored
According to the latest data from the China Banking and Insurance Regulatory Commission, by the end of 2021, the balance of insurance capital utilization had reached 23.2 trillion yuan, an increase of 7% over the end of 2020. Among them, stocks and securities investment funds accounted for 12.7%, a new low in recent three years.
Wentian (pseudonym), investment director of a life insurance company, told reporters that January may not be the lowest point of A-Shares in the whole year. For value investors, there may be bargain hunting opportunities this year, but trend investors should be vigilant that the market may be “bear” this year. For insurance funds, in theory, the more they fall, the more they buy. However, in fact, due to subjective judgment, internal assessment and other factors, the purchase volume of various institutions is not necessarily large. Superimposed on the impact of the decline of stock price leading to the shrinkage of market value, the proportion of equity assets may decline slightly in the end.
Some insurance investors are more optimistic about the judgment of the equity market. Wang Junhui, President of China Insurance Asset Management Association, said at the “2022 exchange meeting on asset allocation of institutional investors” recently that he continued to be optimistic about the value of equity allocation. Since the beginning of the year, the core reason for the A-share adjustment is the overvaluation of some industries, as well as other factors such as overseas liquidity. From the perspective of policy, fundamentals and liquidity, the three core factors affecting a shares, this year, the policy is friendly and the liquidity is abundant. On the whole, A-Shares are still expected to achieve positive returns throughout the year, and structural opportunities still exist. For the overall allocation of insurance capital throughout the year, we should appropriately reduce the income expectation and make a flexible and stable layout. In terms of equity investment, we should focus on the long-term strategic layout and actively grasp tactical opportunities.
For the investment opportunities in the equity market this year, some venture capitalists mentioned that the infrastructure investment in 2022 will be strongly supported: first, the recently held executive meeting of the State Council required that the 1.2 trillion yuan of local government special bond funds issued in the fourth quarter of 2021 be allocated to specific projects as soon as possible; Second, the public offering of REITs for infrastructure raised 36.4 billion yuan last year, which has been successful, and the financing scale is expected to continue to increase in the future. Therefore, the infrastructure industry chain will usher in extreme changes in the basic area, and the construction industry, new power system, digital infrastructure and other industries will benefit from the acceleration of infrastructure.
Wen Tian said that he is optimistic about the investment value of banking, infrastructure and other sectors this year. Some venture capitalists said that the short-term adjustment of the new energy track does not change the long-term trend, and there are still great opportunities, but it is also necessary to reduce the expectation of investment income and select individual stocks. In addition, technology tracks and consumer tracks may also contain large investment opportunities.
