Core Insights - Insurance funds have significantly increased their presence in the A-share market, with nearly 800 companies listed among the top ten shareholders as of June 2025, and over 280 stocks being increased in the second quarter alone [2][3] - The total investment scale of insurance funds reached 36 trillion yuan by the end of the second quarter of 2025, with stock investments amounting to 3.07 trillion yuan, a net increase of approximately 640 billion yuan compared to the previous quarter [2][3] Group 1: Investment Trends - The seven major A+H listed insurance companies have a combined investment scale of 21.85 trillion yuan, accounting for 60.30% of the total industry [2] - The stock investment scale of these companies reached 2.05 trillion yuan, with a net increase of 431.3 billion yuan, representing 67.39% of the industry's net increase [3] - Insurance funds are increasingly allocating to equity assets due to declining risk-free returns, with different companies showing varied strategies in their asset allocation [4][5] Group 2: Company-Specific Actions - China Ping An saw the largest increase in stock investment, with a net increase of 211.9 billion yuan, raising its proportion by 2.9 percentage points [4] - China Life's stock investment increased by 119.1 billion yuan, with a 1.1 percentage point rise in proportion [4] - Sunshine Insurance has the highest stock investment proportion among the seven companies at 14.1%, with a 23.9% increase [4] Group 3: Sector Preferences - As of mid-2025, insurance funds have allocated nearly 1 trillion yuan to high-dividend other comprehensive income (OCI) stocks, with a significant increase in the proportion of OCI stocks in their portfolios [6] - The top five sectors for insurance fund holdings include banking, transportation, communication, real estate, and utilities, with the media, communication, and utilities sectors seeing the largest increases in holdings [6] Group 4: Market Dynamics - Insurance funds have engaged in 30 "block trades" since the beginning of 2025, with the banking sector being the most active [8] - The shift in accounting standards is expected to influence the stability of insurance companies' net profits, prompting a greater focus on OCI asset allocation [9] - Recent policy changes have encouraged insurance companies to invest more in the A-share market, with a target of 30% of new premiums allocated annually [10]

Core Viewpoint - Insurance funds are increasingly becoming a significant presence in the A-share market, with substantial investments in various sectors and a notable shift towards equity assets as traditional fixed-income returns decline [2][4][11]. Group 1: Insurance Fund Presence and Investment Trends - As of June 2025, insurance funds are listed among the top ten shareholders in nearly 800 A-share companies, with over 280 stocks increased and more than 300 new positions established in Q2 [2][4]. - The total investment balance of insurance companies in stocks reached 3.07 trillion yuan, an increase of approximately 640 billion yuan from Q4 2024 [4]. - The seven major A+H listed insurance companies hold a combined investment total of 21.85 trillion yuan, accounting for 60.30% of the industry total [4]. Group 2: Investment Strategies and Asset Allocation - Insurance companies are focusing on balancing returns, duration, and cash flow due to the long-term nature of their liabilities, leading to a cautious approach towards risk [4][11]. - In a low-risk return environment, insurance funds are gradually increasing their allocation to equities, with varying strategies among different companies [4][5]. - The average dividend yield of stocks held by insurance funds is 2.30%, slightly down from previous periods due to rising stock prices [8]. Group 3: Specific Company Actions and Sector Preferences - China Ping An has seen the largest increase in stock investment, with a net increase of 211.9 billion yuan, while China Life and New China Life also reported significant increases [5]. - The top five sectors for insurance fund holdings include banking, transportation, telecommunications, real estate, and utilities, with media, telecommunications, and utilities showing the highest quarterly increases [8]. - Insurance funds have engaged in notable stock purchases, with China Life increasing positions in CITIC Bank and China Telecom, while reducing holdings in Sinopec [9][10]. Group 4: Regulatory Environment and Future Outlook - Recent regulatory changes have encouraged insurance companies to allocate more funds to the A-share market, with a target of 30% of new premiums to be invested annually [12]. - The overall market valuation is considered reasonable, with expectations for continued investment in technology, consumer manufacturing, and emerging markets [12].

Regulatory Dynamics - The three departments are exploring the construction of a forest insurance product system, including index insurance, yield insurance, income insurance, and liability insurance [7] - The Ministry of Commerce will increase support for export credit insurance and enhance the convenience of insurance services [8] - The Financial Regulatory Bureau has introduced new regulations for insurance company capital guarantee deposits [9] - In 2024, the compulsory traffic insurance premium income is projected to be 271.06 billion, with claims costs at 226.28 billion [10] - The Financial Regulatory Bureau has abolished 11 regulatory documents related to the insurance industry [11] - From January to July 2025, the insurance industry’s original premium income exceeded 4.2 trillion, with claims expenditures exceeding 1.5 trillion [12] - The Medical Insurance Bureau reported that from January to July 2025, the basic medical insurance fund income exceeded 1.68 trillion, with expenditures nearing 1.37 trillion [13] Company Dynamics - Ping An Life has made three significant investments in Agricultural Bank's H-shares within six months [20] - Minsheng Insurance increased its stake in Zheshang Bank's H-shares to 6.03% [21] - Hongkang Life raised its stake in Zhengzhou Bank's H-shares to 21.24% [22] - Hongkang Life also increased its stake in Honghua Smart Energy to 7.05% [23] - China Ping An plans to cancel 103 million A-shares [24] - China Life has established a venture capital fund with a registered capital of 1 billion [25] - Sunshine Life, along with Tencent and other partners, has set up an equity investment fund with an investment of approximately 22.43 billion [27] - AIA Life has established an equity investment fund in Tianjin with a total investment of 4.5 billion [28] - Guolian Life has set up a 1.22 billion fund to invest in new quality productivity and smart technology [29] - China Pacific Insurance reported a net profit of 27.885 billion for the first half of the year, a year-on-year increase of 11% [30] - China Taiping reported a net profit of 6.764 billion HKD for the first half of the year, a year-on-year increase of 12.2% [32] - New China Life's net profit for the first half of the year was 14.799 billion, a year-on-year increase of 33.5% [34] - China Life's net profit reached 40.931 billion for the first half of the year, a year-on-year increase of 6.9% [35] - China Insurance reported a net profit of 26.530 billion for the first half of the year, a year-on-year increase of 16.9% [36] - China Ping An's operating profit for the first half of the year was 77.732 billion, a year-on-year increase of 3.7% [38] - China Re reported total premium income of 103.835 billion for the first half of the year, with a net profit growth of 9.0% to 6.244 billion [41] Industry Dynamics - A total of 73 life insurance companies reported a combined net profit of 185.8 billion for the first half of the year, with a year-on-year increase of approximately 25% [64] - The first AIC equity investment fund that incorporates bank insurance funds has been established with a capital of 1 billion [65] - Another insurance asset private equity fund has completed registration [66]

Market Overview - The Shanghai Composite Index fell below the 3800 mark, closing at 3765.88 points, down 1.25%, while the Shenzhen Component Index and ChiNext Index dropped 2.83% and 4.25% respectively, indicating a recent market correction after a rapid rise in August [1][8] Stock Recommendations - A total of 42 brokerages have issued stock recommendations for September, suggesting 285 stocks, with ZTE Corporation, New China Life Insurance, and Kaiying Network being the most frequently recommended, each by 5 brokerages [2][3] - In the last three months, Muyuan Foods and Oriental Fortune have been recommended 14 times, the highest among all A-shares, while Luoyang Molybdenum and Kaiying Network were recommended 11 times [2][4] Performance of Recommended Stocks - Luoyang Molybdenum has seen a nearly 40% increase since August, while ZTE Corporation and Kaiying Network were only recommended by one brokerage in August [3][5] - Among the top 10 recommended stocks, only Luoyang Molybdenum saw a slight increase of 0.65% from September 1 to September 4, while the others experienced declines, with four stocks dropping over 10% [5][6] Sector Focus - Brokerages are focusing on technology sectors such as computing power, artificial intelligence, and consumer electronics, while also recommending attention to new consumption, large finance, and domestic substitution themes [2][9] - Long-term bullish sentiment remains for the A-share market, with expectations for economic support measures and a potential rebound in the Hong Kong market [9][10] Company Insights - Luoyang Molybdenum is highlighted as a major international resource company, with copper and cobalt contributing over 70% to its profits, and is expected to benefit from rising prices of strategic metals [7] - New China Life Insurance is favored for its high investment returns from equity assets, with a significant increase in new business from its bancassurance channel [5][6] - Kaiying Network's upcoming game releases and AI applications are anticipated to drive performance growth [6]

Investment Ratings - Securities: Market Perform (Maintain) [1] - Insurance: Overweight (Maintain) [2] Core Insights - The securities industry showed robust performance in the first half of the year, with 42 listed brokerages achieving total revenue of CNY 251.87 billion, a year-on-year increase of 11.37%, and net profit of CNY 104.02 billion, up 65.09% [3][47] - The banking sector demonstrated marginal improvement, with 42 listed banks reporting revenue of CNY 2.92 trillion, a year-on-year growth of 1.04%, and net profit of CNY 1.10 trillion, an increase of 0.80% [6][45] - The insurance sector's five listed companies achieved revenue of CNY 1.33 trillion, a 4.7% increase, and net profit of CNY 178.19 billion, up 3.7% [49] Summary by Sections Market Review - As of September 4, 2025, the banking, securities, and insurance indices experienced declines of -1.93%, -3.56%, and -3.89% respectively, while the CSI 300 index rose by 1.80% [6][14] Valuation Situation - The banking sector's price-to-book (PB) ratio stood at 0.76, with state-owned banks at 0.81, joint-stock banks at 0.64, city commercial banks at 0.72, and rural commercial banks at 0.63 [23] - The securities sector's PB ratio was 1.56, indicating potential for valuation recovery [25] Recent Market Indicators - The average daily trading volume in A-shares was CNY 2.64 trillion, a decrease of 10.79% week-on-week, reflecting a cooling investor sentiment [33] - The one-year medium-term lending facility (MLF) rate was 2.0%, with the one-year and five-year Loan Prime Rates (LPR) at 3.0% and 3.5% respectively [32] Industry News - The insurance sector is encouraged to return to its core protection role, with policies supporting increased equity investment, which is expected to enhance long-term growth [49] - The banking sector is seeing a shift in capital towards high-dividend, low-valuation stocks, driven by a low-interest-rate environment and asset scarcity [45]

Core Insights - Xinhua Insurance celebrates its 29th anniversary in 2025, reflecting on its growth as a significant player in China's insurance market, driven by a customer-centric approach and ongoing market-oriented reforms [1][2][3] Financial Performance - In the first half of 2025, Xinhua Insurance achieved an operating revenue of 70.041 billion yuan, a year-on-year increase of 26% [2] - The company's original insurance premium income exceeded 121.262 billion yuan, marking a substantial growth of 22.7% [2] - New business value reached 6.182 billion yuan, up 58.4% year-on-year, while the embedded value rose to 279.394 billion yuan, an 8.1% increase from the previous year [2] - Net profit attributable to shareholders was 14.799 billion yuan, reflecting a 33.5% increase, with a return on equity (ROE) of 15.9%, up nearly 5 percentage points [2] Asset and Solvency Position - As of June 30, 2025, Xinhua Insurance's total assets reached 1.78 trillion yuan, a 5% increase from the end of the previous year [3] - The core solvency ratio stood at 170.72%, up 46.65 percentage points, while the comprehensive solvency ratio was 256.01%, an increase of 38.46 percentage points [3] Strategic Initiatives - The "XIN Generation" plan was launched in July 2024 to transform the individual insurance channel, focusing on five upgrades to enhance the marketing team [5][6] - The individual insurance channel reported a first-year premium of 14.506 billion yuan, a significant increase of 70.8% [6] - The number of individual insurance agents reached 133,000, with a 182% year-on-year increase in new hires [6] Service Ecosystem - Xinhua Insurance has developed a comprehensive service ecosystem covering ten areas, including health management and wealth management, to meet diverse customer needs [7][9] - The "Xinhua Respect" service system targets high-net-worth clients, while "Xinhua Safe" focuses on home-based elderly care [9] - The company has established a health management service network, expanding to 40 international hospitals for comprehensive health management [9][10] Investment Strategy - Xinhua Insurance emphasizes asset-liability matching, optimizing product strategies and asset structures to control costs and enhance returns [12] - The investment scale exceeded 1.7 trillion yuan, with a total annualized investment return rate of 5.9%, up 1.1 percentage points [12][13] Future Outlook - As Xinhua Insurance approaches its 30th anniversary, it aims to enhance its core competitiveness through reforms, customer-centric strategies, and a commitment to high-quality growth [14][15]

Core Viewpoint - Xinhua Insurance has demonstrated strong growth and resilience in the insurance market, achieving significant performance improvements and strategic transformations as it approaches its 29th anniversary [1][2][15]. Financial Performance - In the first half of 2025, Xinhua Insurance reported operating revenue of 700.41 million yuan, a year-on-year increase of 26% [2]. - The company's original insurance premium income exceeded 1,212.62 million yuan, reflecting a substantial growth of 22.7% [2]. - New business value reached 618.2 million yuan, up 58.4% year-on-year, while the embedded value increased to 2,793.94 million yuan, an 8.1% rise from the previous year [2]. - Net profit attributable to shareholders was 147.99 million yuan, marking a 33.5% increase, with a return on equity (ROE) of 15.9%, up nearly 5 percentage points [2]. Asset and Solvency - As of June 30, 2025, Xinhua Insurance's total assets reached 1.78 trillion yuan, a 5% increase from the previous year [3]. - The core solvency ratio stood at 170.72%, up 46.65 percentage points, while the comprehensive solvency ratio was 256.01%, rising 38.46 percentage points, significantly exceeding regulatory requirements [3]. Strategic Initiatives - The "XIN Generation" plan was launched to transform the individual insurance channel, focusing on five upgrades to enhance the marketing team [4][6]. - The individual insurance channel achieved a first-year premium of 145.06 million yuan, a remarkable increase of 70.8% year-on-year [6]. - The number of individual insurance agents reached 133,000, with a monthly performance rate stabilizing at 13.3% and a 74% increase in per capita productivity [6]. Service Ecosystem - Xinhua Insurance has developed a comprehensive service ecosystem covering ten areas, including health management and wealth transfer, to meet diverse customer needs [7][9]. - The "Xinhua Respect" service system targets high-net-worth clients, while "Xinhua Safe" focuses on home-based elderly care [9]. - The company has established a health management service network, expanding to 40 international hospitals for comprehensive health management [9]. Investment Strategy - Xinhua Insurance emphasizes asset-liability matching, optimizing product strategies and asset structures to control costs and enhance returns [13]. - The investment scale exceeded 1.7 trillion yuan, with a 5.1% increase, achieving an annual total investment return rate of 5.9% [13][14]. - The company has established pilot funds with a cumulative scale of nearly 100 billion yuan, focusing on quality listed companies in the secondary market [14]. Future Outlook - As Xinhua Insurance approaches its 30th anniversary, it aims to enhance its core competitiveness through strategic reforms, customer-centric approaches, and robust operational management [15].

NEW CHINA LIFE INSURANCE COMPANY LTD. 股份代號: 01336 （於中華人民共和國註冊成立的股份有限公司） 中期報告 2025 新華保險服務號 新華保險服務號 投資者關係網站 New China Insurance Tower, A12 Jianguomenwai Avenue, Chaoyang District, Beijing 100022,P.R.C www.newchinalife.com NEW CHINA LIFE INSURANCE COMPANY LTD. 新華人壽保險股份有限公司 北京市朝陽區建國門外大街甲12號新華保險大廈 New China Life Insurance Company Ltd. 中期報告 重要提示 新華人壽保險股份有限公司 1 1. 董事會、監事會及董事、監事、高級管理人員保證本報告內容的真實、 準確、完整，不存在虛假記載、誤導性陳述或重大遺漏，並承擔個別和 連帶的法律責任。 2. 本公司第八屆董事會第三十六次會議於2025年8月28日審議通過了《2025 年中期報告》。會議應出席董事11人，親自出席董事11人。 3. 本公司202 ...

Group 1 - The insurance sector experienced a decline of 0.3% on September 5, with China Life leading the drop [1] - The Shanghai Composite Index closed at 3812.51, up 1.24%, while the Shenzhen Component Index closed at 12590.56, up 3.89% [1] - Major insurance stocks showed mixed performance, with New China Life Insurance up 0.83% and China Life down 1.16% [1] Group 2 - The net inflow of main funds in the insurance sector was 109 million yuan, while retail funds saw a net inflow of 157 million yuan [1] - The table of fund flows indicates that China Life had a main fund net inflow of 11.77 million yuan, but retail funds saw a net outflow of 28.70 million yuan [2] - China Ping An had a main fund net inflow of 43.37 million yuan, while retail funds experienced a net inflow of 175 million yuan [2]

Regulatory Voice - The State Council issued an opinion on September 4 to guide insurance institutions in developing insurance products for sports events and sports injuries [1] Industry Focus - On September 4, the China Insurance Industry Association released the first set of comprehensive insurance demonstration clauses and supporting underwriting and claims service guidelines for major technical equipment and new materials, marking a significant step in advancing technology insurance and supporting the national manufacturing strategy [1] - Five major A-share listed insurance companies, including China Ping An, China Life, China Pacific Insurance, China People’s Insurance, and New China Life, reported a total revenue of 1,333.86 billion yuan for the first half of 2025, a year-on-year increase of 4.89%, and a net profit attributable to shareholders of 178.19 billion yuan, up 3.72%. Despite revenue growth, net profit showed a mixed performance with four companies increasing and one decreasing. All five companies plan to steadily increase equity asset allocation, focusing on high-dividend value stocks and growth sectors to enhance long-term returns and smooth earnings [1] Financial Personnel - Bai Kai is proposed to be appointed as the Deputy General Manager of China Taiping Insurance Holdings, having previously served as Vice President of China Life Insurance [2] Leadership Changes - China Reinsurance Group announced a leadership change with Zhuang Qianzhi, the former Vice Secretary of the Party Committee and President, set to take over as Party Secretary and proposed Chairman, pending governance and regulatory approval [3] - Li Shihong has been approved to serve as the Chairman of Guobao Life Insurance, as confirmed by the Sichuan Financial Regulatory Bureau on September 1 [4]