the enthusiasm of insurance funds for real estate seems to have “stalled” this year.
On December 30, the reporter of Beijing business daily made incomplete statistics. Since the beginning of the year, a number of insurance companies, including Taikang Life Insurance and everyone life insurance, have reduced their holdings of real estate stocks. Among the objects of reduction, there are many head real estate companies such as Vanke and Gemdale Corporation(600383) .
Insurance companies’ investment has always been regarded as a forward-looking and wind vane, what signals did it reveal when it withdrew from real estate? In the future, will insurance investment in real estate make a comeback?
sell at a loss and accelerate the evacuation
All along, in the list of heavy positions, real estate is a “good heart” of insurance capital, ranking second only to banks. But this year, the love of insurance funds for real estate seems to be less “fierce” than before.
On December 27, Taikang Life and Taikang Endowment Insurance Co., Ltd. (hereinafter referred to as “Taikang endowment”) planned to transfer Yango Group Co.Ltd(000671) 307 million shares, accounting for 7.41% of the total share capital, to Cangzhou Taihe building materials Co., Ltd. at a price of 3.05 yuan / share. On the same day, Taikang pension reduced its Yango Group Co.Ltd(000671) 83 million shares through block trading, accounting for 2% of the total share capital.
At present, the equity transfer is still in the process of transfer registration. if the share transfer is completed, Taikang Life and Taikang assets in Taikang department will hold Yango Group Co.Ltd(000671) 3.997% equity, and Taikang pension will no longer hold Yango Group Co.Ltd(000671) shares.
Looking back, in September 2020, Taikang Life and Taikang pension signed the equity transfer agreement with Shanghai Jiawen investment, the second largest shareholder of Yango Group Co.Ltd(000671) , and transferred a total of Yango Group Co.Ltd(000671) 555 million shares held by Shanghai Jiawen (accounting for 13.53%), with a total transfer price of RMB 3.378 billion, about RMB 609 per share.
It is not difficult to find that in one year of , Yango Group Co.Ltd(000671) share price fell from 6.09 yuan to 3.05 yuan, almost “halving” .
the loss departure of Taikang department is only an epitome of the withdrawal of insurance funds from real estate this year.
On December 30, the reporter of Beijing business daily made incomplete statistics. During the year, a number of insurance companies, including everyone life and harmonious health, reduced their holdings of real estate stocks, and many of them were Vanke, Gemdale Corporation(600383) and other leading real estate companies.
Specifically, from September to December, everyone life reduced its holdings of Gemdale Corporation(600383) for six consecutive times, and its shareholding ratio fell from 20.43% to 5.43%. While reducing Gemdale Corporation(600383) , everyone life also reduced its holdings of Financial Street Holdings Co.Ltd(000402) for many times, and its shareholding in Financial Street Holdings Co.Ltd(000402) decreased from 14.1% to 10.11%. In addition to the reduction of Financial Street Holdings Co.Ltd(000402) by everyone life, it has also been reduced by harmonious health insurance Co., Ltd. – Universal products.
why did the friendship boat turn over?
As a professional institutional investor, the investment of insurance capital is forward-looking and wind vane. The layout of insurance + real estate is also regarded by investors as a “match made in heaven”. Why does “the boat of friendship turn over”?
This is behind the regulatory “correction” of venture capital investment in real estate.
In September 2020, the China Banking and Insurance Regulatory Commission reported the illegal use of insurance funds, pointing out that insurance funds illegally flowed into the real estate field through direct investment or investment in financial products, involving five insurance companies with an amount of 24.437 billion yuan.
In November 2020, the CBRC issued the notice on matters related to financial equity investment of insurance funds, which clearly requires insurance funds to carry out financial equity investment, and the invested target enterprises shall not directly engage in real estate development and construction, including the development or sales of commercial housing.
the risks of real estate companies are also “Persuading” insurance funds. Rumors about the bankruptcy of China Evergrande have emerged one after another in years, and the debt crisis of China Fortune Land Development Co.Ltd(600340) is also “warning” to investors. Even on July 26, the rating report of China integrity international adjusted the outlook of China’s real estate industry from stable to negative.
According to Wang Zhaojiang, chairman of Shenzhen Huihe Chuangshi Investment Management Co., Ltd., this year is the peak of repayment of real estate dollar bonds. Considering that real estate enterprises may have capital pressure at present, the withdrawal of insurance funds from real estate is a temporary risk aversion behavior to avoid the impact of debt pressure on asset prices.
Taikang also responded to this: “since this year, the whole A-share real estate sector has been affected by multiple factors, the fundamentals have weakened, and many enterprises in the industry have been affected. Yango Group Co.Ltd(000671) share prices have also fluctuated greatly. As an institutional investor, Taikang has made timely adjustments to its position shares and decided to reduce its holdings of Yango Group Co.Ltd(000671) shares, which is a normal investment decision.”
So, will the investment of insurance capital in real estate make a comeback in the future? “The property of real estate investment exists for a long time. There is no doubt about it, but the rate of return is difficult to be as rich as before. when the real estate asset price highlights the investment value, the insurance capital will still return to the layout .” Wang Zhaojiang’s analysis.
Yan Yuejin believes that whether to increase positions in the future depends on the operation of real estate companies. At present, there is still pressure on the operation of real estate companies. In the near future, venture capital will only be more cautious. it is estimated that we will see whether to invest in the future until 2023.
(Beijing business daily)
