On March 16, the Finance Committee of the State Council held a special meeting and proposed: “financial institutions must proceed from the overall situation and firmly support the development of the real economy. Long term institutional investors are welcome to increase their shareholding ratio.” The cbcirc immediately held a special meeting to deploy the work, making it clear that we should give full play to the advantages of long-term investment of insurance funds and guide insurance institutions to allocate more funds to equity assets. Support insurance companies to increase capital market investment, especially stock investment of high-quality listed companies, through various channels such as direct investment, entrusted investment and public funds.
As an important long-term institutional investor in the capital market, insurance institutions are highly expected by the market. The long-term insurance funds it brings can optimize the supply and demand structure of the capital market and improve the market liquidity and activity. It is an important force to maintain the stable and healthy development of the capital market. Under the guidance of the joint efforts of all parties to maintain stability, how insurance funds will give full play to their investment advantages and do a good job in the allocation of equity assets has attracted much market attention.
the number of listed companies surveyed has doubled since this year
According to the latest data disclosed by the CBRC, as of the end of January, the balance of insurance fund utilization was 23.24 trillion yuan, of which stock and securities investment funds were 2.88 trillion yuan, accounting for 12.39%.
The chief actuary of a life insurance company said that the proportion of stock and securities investment funds of industry insurance funds has remained between 12% and 13% for a long time. At the end of last year, the balance of insurance investment stocks and securities investment funds accounted for 3.93% of the market value of circulating A-Shares and 2.98% of the total market value of listed companies. It is an important institutional investor in the A-share and H-share markets.
Since this year, insurance institutions have increased their research on listed companies. Data show that as of March 20, 108 insurance institutions have investigated listed companies 1723 times this year, more than doubling the number of investigations compared with the same period last year. Among them, since this year, Changjiang pension, Guoshou pension, Ping An pension and Guohua life insurance have ranked in the top four, with more than 100 times. Since March alone, 73 insurance institutions have participated in the research of listed companies for a total of 325 times.
In terms of sectors, insurance institutions conduct more research on listed companies on Shenzhen main board, gem and sci-tech innovation board. In terms of industry, insurance institutions pay much attention to system software, medical and health care equipment, western medicine, motor vehicle parts and equipment, special chemicals, electronic components, information technology consulting and other services, clothing and luxury goods and other industries. In terms of individual stocks, Thunder Software Technology Co.Ltd(300496) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Lop pharmaceutical, Foryou Corporation(002906) , Ningbo Ronbay New Energy Technology Co.Ltd(688005) , etc.
stock market has entered the bottom building stage, and insurance funds have gradually built positions
Looking forward to the future trend of the A-share market, a number of insurance asset managers interviewed believe that with the release of continuous valuation pressure after the Spring Festival, the current market valuation has returned to a reasonable level. With the implementation of the relevant arrangements of the financial commission and the CBRC, the economic and policy environment facing China’s capital market will continue to improve. It is expected that the short-term fluctuations of the market will gradually subside and tend to be stable in the long term.
The head of the investment department of an insurance group told reporters: “we judge that it is not far from the bottom of demand, policy and expectation. Therefore, we have a relatively positive attitude towards the future market. The specific position adding strategy needs to be further clarified. In the long run, it is a good time to enter the market, but we should also be patient.”
For the signals released by the CBRC, the above-mentioned person in charge said that he looked forward to the implementation of more specific policies in the future, such as giving some exemptions or grace in the relevant systems of equity limit and solvency; At the same time, we also look forward to the introduction of more support policies for special products and private exchangeable bonds. While responding to the call of the policy to increase the allocation of equity assets, insurance funds should also be responsible for the interests of insurance funds, policyholders and shareholders.
The general manager of the equity investment department of an insurance asset management company also said that policies at all levels have been blowing frequently recently, and it is expected that follow-up supporting measures will continue to be introduced. “At present, the market has entered the bottom range, and the stock market has entered the bottom building stage. The probability of insurance funds in this range will gradually build positions, and the direction of adding positions includes stocks with stable performance growth, scientific and technological innovation, new energy and other sectors.”
