Insurers’ investment route in the second quarter: increase positions in ICBC and reduce holdings in Agricultural Bank, favoring this popular stock

Under the volatile market environment, the pursuit of “absolute return” of insurance capital to do what position?

Interface News reporter found that, according to the data statistics, if we exclude the market value of shares held by the National Life Group on China Life Insurance Company Limited(601628) and Ping An Group on Ping An Bank Co.Ltd(000001) (the same below), insurance funds appeared in the top ten shareholders of 602 listed companies in the 2022 semi-annual report, with a total market value of 610596 billion yuan, an increase of 11.610 billion yuan from the end of the first quarter.

Among them, from the viewpoint of the market value of individual stock positions, insurance funds are still the long-term advocates of banking stocks.

Table: Top 10 market value of insurers’ positions. Data source: compiled by Interface News Research Department
China Merchants Bank Co.Ltd(600036) ( China Merchants Bank Co.Ltd(600036) .SH) maintains the top of the list of stocks with market value of insurers’ positions, with a total of 1.946 billion shares and a total market value of 82.122 billion yuan. Industrial Bank Co.Ltd(601166) ( Industrial Bank Co.Ltd(601166) .SH), Shanghai Pudong Development Bank Co.Ltd(600000) ( Shanghai Pudong Development Bank Co.Ltd(600000) .SH) ranked the top three, with a total market value of 55.577 billion yuan and 46.563 billion yuan respectively. China Minsheng Banking Corp.Ltd(600016) ( China Minsheng Banking Corp.Ltd(600016) .SH), Ping An Bank Co.Ltd(000001) ( Ping An Bank Co.Ltd(000001) .SZ), Industrial And Commercial Bank Of China Limited(601398) ( Industrial And Commercial Bank Of China Limited(601398) .SH), Hua Xia Bank Co.Limited(600015) ( Hua Xia Bank Co.Limited(600015) .SH) among the top ten.

Among the non-bank stocks, China Yangtze Power Co.Ltd(600900) ( China Yangtze Power Co.Ltd(600900) .SH) of the hydropower sector and Gemdale Corporation(600383) ( Gemdale Corporation(600383) .SH) and Poly Developments And Holdings Group Co.Ltd(600048) ( Poly Developments And Holdings Group Co.Ltd(600048) .SH) of the real estate sector are still important layout stocks for insurance capital, with a position market value of 38.335 billion yuan, 22.053 billion yuan and 13.00 billion yuan respectively.

With the hot power stocks, during the second quarter, China Yangtze Power Co.Ltd(600900) accumulated 5.09%, and in July hit a record high, the latest closing price of 23.82 yuan / share, the total market value of 541.7 billion yuan.

Table: The top ten stocks of the number of shares increased by insurers in the second quarter. Data source: Interface News Research Department collated
From the number of increased holdings, China Life Insurance Company Limited(601628) performance is very positive. Not only a large increase in holdings of two banking stocks, but also spread across consumer, real estate, new energy and other areas.

Among them, China Life Insurance Company Limited(601628) increased holdings of Industrial And Commercial Bank Of China Limited(601398) ( Industrial And Commercial Bank Of China Limited(601398) .SH) 259 million shares, the top of the number of increased holdings by insurance companies, also increased holdings of Bank Of China Limited(601988) 94,858200 shares. Henan Shuanghui Investment & Development Co.Ltd(000895) ( Henan Shuanghui Investment & Development Co.Ltd(000895) .SZ), China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) ( China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) .SZ), TCL Central ( Tianjin Zhonghuan Semiconductor Co.Ltd(002129) .SZ) is also quite favored by China Life Insurance Company Limited(601628) , respectively, increased holdings of 24,184600 shares, 22,031600 shares, 13,649800 shares.

China Life Insurance Company Limited(601628) previously disclosed semi-annual report also indicates that the company increased its investment in equity assets, and the allocation ratio of stocks and funds (excluding money market funds) was raised to 11.17% from 8.75% at the end of 2021.

Together with the China Life Insurance Company Limited(601628) in TCL Central, there is also everyone life, the second quarter increased its holdings of 17,536100 shares.

As a company in the field of semiconductor material manufacturing and new energy photovoltaic manufacturing, TCL Zhonghuan achieved good results in the first half of the year. In the first half of the year, due to the release of production capacity and expansion of sales scale, the company achieved operating income of 31.698 billion yuan, an increase of 79.65%; net profit attributable to shareholders of the listed company was 2.917 billion yuan, an increase of 92.10% over the same period of the previous year.

The strong photovoltaic sector has driven TCL Central’s share price to rise rapidly, with a cumulative increase of 38.24% in the second quarter, hitting a new high of 62.21 yuan/share in early July, followed by a gradual pullback, with the latest share price having fallen to 47.61 yuan/share.

In addition, everyone life also increased its holdings of 9,865300 shares Addsino Co.Ltd(000547) ( Addsino Co.Ltd(000547) .SZ), and Thai life increased its holdings of 12,360100 shares Jiao Zuo Wan Fang Aluminum Manufacturing Co.Ltd(000612) ( Jiao Zuo Wan Fang Aluminum Manufacturing Co.Ltd(000612) .SZ), and Xinhua life increased its holdings of 31,146900 shares China National Nuclear Power Co.Ltd(601985) ( China National Nuclear Power Co.Ltd(601985) .SH).

Table: Top 10 new stocks by insurance capital in the second quarter. Data source: Interface News Research Department collated
Then from the list of new stocks by insurance capital, the most concerned or bank stocks.

Taiping Life invested Industrial And Commercial Bank Of China Limited(601398) with its own funds and became the tenth largest shareholder in one fell swoop, with a position of 459 million shares and a total market value of more than 2 billion yuan. Centennial Life, Jiaoyin Life, respectively, into the China Zheshang Bank Co.Ltd(601916) ( China Zheshang Bank Co.Ltd(601916) .SH), Bank Of China Limited(601988) top ten shareholders in circulation, the number of positions of 261 million shares, 156 million shares.

In addition, the harmonious health insurance two universal products flocked to China Three Gorges Renewables (Group) Co.Ltd(600905) ( China Three Gorges Renewables (Group) Co.Ltd(600905) .SH), the number of positions reached 100 million shares or more, the combined market value of the position of 1.6 billion yuan. New China Life also entered the China Three Gorges Renewables (Group) Co.Ltd(600905) ten largest shareholders in circulation, with a position of 0.40 billion shares and a total market value of 253 million yuan.

The half-yearly report shows that due to the increase in wind power and photovoltaic projects in operation and the increase in feed-in tariff, China Three Gorges Renewables (Group) Co.Ltd(600905) achieved operating revenue of 12.129 billion yuan in the first half of the year, up 45.34% year-on-year; net profit attributable to shareholders of the listed company was 5.037 billion yuan, up 36.62% year-on-year. In terms of stock performance, the cumulative decline of 18.24% in the first quarter of this year, a slight increase of 2.44% in the second quarter.

It is worth noting that the China Life Insurance Company Limited(601628) “active in the market” again returned to China Vanke Co.Ltd(000002) ( China Vanke Co.Ltd(000002) .SZ) top ten shareholders listed. 2020 at the end of the second quarter, China Life Insurance Company Limited(601628) first entered the China Vanke Co.Ltd(000002) top ten shareholders, then continue to reduce holdings, 2021 three quarterly report began disappeared into hiding, reappeared a year later, holding 830310 million shares, market value of more than 1.7 billion yuan.

China Life Insurance Company Limited(601628) also fell in love with the leading pharmaceutical Wuxi Apptec Co.Ltd(603259) ( Wuxi Apptec Co.Ltd(603259) .SH), the new entry into the company’s ninth largest shareholder, the market value of the position up to 5.5 billion yuan.

Table: Top ten stocks of the number of shares reduced by insurance capital in the second quarter. Data source: Interface News Research Department collated
On the other hand, from the stocks that suffered a large reduction in insurers’ holdings, insurers are diverging on other bank stocks.

China Life Insurance Company Limited(601628) large reduction in holdings of Agricultural Bank Of China Limited(601288) ( Agricultural Bank Of China Limited(601288) .SH), the number of shares reduced by more than 1 billion in the second quarter. Since the fourth quarter of last year, China Life Insurance Company Limited(601628) has continued to reduce its holdings, and the reduction in the second quarter of this year was the largest since 3 years.

China Life Insurance Company Limited(601628) also reduced its holdings by 18,042500 shares of Postal Savings Bank Of China Co.Ltd(601658) ( Postal Savings Bank Of China Co.Ltd(601658) .SH), which is the fourth consecutive quarterly reduction, but China Life Insurance Company Limited(601628) is still the third largest shareholder of the company. Since the third quarter of this year, Postal Savings Bank Of China Co.Ltd(601658) share price has been going down, has fallen 13.34% in total.

At the same time, The Pacific Securities Co.Ltd(601099) Life reduced its holdings of Bank Of China Limited(601988) 42,238600 shares, and Huaxia Life reduced its holdings of China Minsheng Banking Corp.Ltd(600016) ( China Minsheng Banking Corp.Ltd(600016) .SH) 25,560000 shares.

Looking ahead, a large insurance management believes that the market in August-September will still be in a phase of intensive revision of expectations, including the revision of policy expectations (mainly corresponding to the traditional stabilization of growth sectors, post-epidemic repair sectors) and the revision of earnings expectations (the end of the disclosure of the interim report may experience a relatively sharp downward revision of performance), the market will be significantly more volatile bottom-up fundamental expectations. In terms of structure, the liquidity environment is difficult to tighten in the general direction is still the core support of the structural market, it is expected that the short-term market is still in the sector rotation phase, but the individual direction of sustainability may not be high, balanced allocation is an important idea to control retracement.

People’s Insurance Asset public team said, in China’s moderate economic growth recovery, policy on economic fundamentals repair is still being implemented, geopolitical changes and other background, the short-term stock market may still consolidate, bullish on the electronics, chips, semiconductors, medical beauty and other fields, as well as the left side of the consumer industry opportunities, continue to focus on the boom track, with special attention to the science and technology innovation board investment opportunities.

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