Guo Ji Jin Rong Bao·2025-06-25 12:59Core Viewpoint - The acceleration of the pilot program for long-term stock investments by insurance funds is a significant development in China's financial market, indicating a shift towards increased participation of insurance capital in the stock market [1][2][3] Group 1: Company Developments - Taibao Zhiyuan (Shanghai) Private Fund Management Co., Ltd. has completed its registration, fully owned by Taibao Asset, a subsidiary of China Taibao [1] - The establishment of Taibao Zhiyuan marks China Taibao's entry into the pilot phase of long-term stock investment by insurance funds [1] - The company was founded on May 21, 2025, with a registered capital of 10 million yuan and currently employs five full-time staff [1] Group 2: Industry Trends - The long-term stock investment pilot allows insurance companies to establish private equity funds primarily targeting the secondary stock market for long-term holdings [2] - The first pilot program began in October 2023, with China Life and Xinhua Life jointly investing 50 billion yuan to establish Honghu Zhiyuan (Shanghai) Private Securities Investment Fund [2] - As of early March 2025, the 50 billion yuan investment by Honghu Fund has been fully allocated, achieving performance that is lower in risk and higher in returns than the benchmark [2] Group 3: Regulatory Developments - In January 2025, the Financial Regulatory Bureau approved a second batch of long-term stock investment pilot programs with a scale of 52 billion yuan, allowing several insurance companies to participate [2] - In March 2025, an additional 60 billion yuan was approved for long-term stock investment pilot programs, with multiple major insurance companies granted participation [2] Group 4: Market Impact - The establishment of the Taibao Zhiyuan 1 Private Securities Investment Fund aims for a target scale of 20 billion yuan, promoting the entry of long-term insurance funds into the market [3] - Analysts suggest that the entry of long-term insurance capital into the market will benefit the insurance sector by increasing the allocation of equity assets and addressing the mismatch between asset and liability durations [3]