China Life(SH:601628) Peng Pai Xin Wen·2025-03-25 12:30Core Viewpoint - The entry of insurance capital into the gold market marks a significant development, with major companies like China Life and Ping An completing their first gold transactions, indicating a shift from planning to execution in gold investment strategies [3][4]. Group 1: Insurance Companies' Actions - China Life completed the first gold inquiry transaction by a domestic insurance institution at the Shanghai Gold Exchange on March 25 [3]. - Ping An Life executed the first Shanghai gold transaction by a domestic insurance institution on the same day [3]. - Other insurance companies also completed their first on-site bidding and bulk trading transactions [3]. Group 2: Investment Strategy and Benefits - China Life emphasized a long-term investment philosophy, focusing on the unique value of gold in optimizing portfolios, hedging risks, and resisting inflation, aiming to enhance the long-term risk-return ratio of its overall investment portfolio [4]. - Ping An Life highlighted the importance of this historical opportunity, planning to actively research gold investment strategies to optimize asset allocation and improve capital utilization efficiency [4]. - The entry of insurance capital into gold investment is expected to optimize asset allocation, enhance potential returns, promote the development of the RMB gold market, and improve RMB gold pricing functions [5]. Group 3: Regulatory Framework - In February, the National Financial Regulatory Administration announced a pilot program for insurance capital investment in gold, with ten insurance companies selected as the first pilot units [5]. - The scope of pilot investments includes various gold contracts and borrowing services at the Shanghai Gold Exchange [5]. - On March 24, the Shanghai Gold Exchange accepted several major insurance companies as members, facilitating their participation in the gold market [6].