
Core Viewpoint - The article highlights the significant investments made by Honghu Fund in the stock market, particularly focusing on three major stocks: China Telecom, Yili Group, and Shaanxi Coal and Chemical Industry, with a total market value exceeding 12.5 billion yuan as of the end of Q1 2025 [1][2]. Investment Details - As of the end of Q1 2025, Honghu Fund held 762 million shares of China Telecom, 153 million shares of Yili Group, and 116 million shares of Shaanxi Coal, with respective market values of 5.98 billion yuan, 4.29 billion yuan, and 2.31 billion yuan [2]. - The fund increased its holdings in Yili Group and Shaanxi Coal by 13.51 million shares and 15.04 million shares respectively, while maintaining its position in China Telecom [2]. Fund Background - Honghu Fund was established in February 2024 with a total scale of 50 billion yuan, funded equally by China Life and Xinhua Insurance [2]. - The fund aims to achieve lower risk and higher returns compared to benchmarks, having successfully deployed its initial investment of 50 billion yuan [2]. Regulatory Developments - The China Financial Regulatory Authority plans to approve an additional 60 billion yuan for insurance funds to invest in the stock market, bringing the total approved and proposed investment scale to 222 billion yuan [1][3]. Focus on High Dividend Assets - The article emphasizes the trend of insurance funds focusing on high dividend stocks, which provide stable returns and align with their long-term investment strategies [6][7]. - Honghu Fund's major holdings exhibit attractive dividend yields, with Shaanxi Coal's yield nearing 7%, and Yili Group and China Telecom yielding over 4% and 3% respectively [6][8]. Future Outlook - Analysts predict that insurance funds will increase their allocation to high dividend assets, estimating an annual increase of 300 to 400 billion yuan over the next three years [8].