Hua Xia Shi Bao·2025-07-07 13:29Core Viewpoint - The insurance capital market is experiencing a significant wave of acquisitions, with insurance funds actively buying shares in listed companies, particularly in the banking and public utility sectors, as well as in leading cyclical industries like steel [2][3][4]. Group 1: Insurance Capital Trends - Insurance funds have made 19 acquisitions this year, nearly matching last year's total of 20 within just six months [2]. - A notable trend is the substantial movement of funds towards Hong Kong stocks, with 14 out of 19 acquisitions involving Hong Kong-listed companies [2][8]. - The average return on investment for insurance companies in the Hong Kong market is approximately 15%, indicating a strong performance compared to previous years [2][8]. Group 2: Investment Strategies - The acquisitions reflect a rebalancing of insurance assets and liabilities, emphasizing long-term value investment [2][5]. - Insurance companies are increasingly focusing on high-dividend, low-volatility stocks, particularly in the banking sector, which offers an average dividend yield exceeding 5% [6][7]. - The recent regulatory changes have allowed for more flexible equity asset allocation, potentially unlocking an additional 1.5 trillion yuan in investment capital [5]. Group 3: Sector Focus - The banking sector remains the primary focus for insurance fund acquisitions, with nine out of the 19 acquisitions involving banking stocks [6]. - Steel industry leaders like Hualing Steel are also attracting attention, indicating a tactical interest in undervalued cyclical stocks [7]. - The insurance funds are not entirely avoiding cyclical industries but are selectively investing in financially stable companies with strong cash flow and dividend capabilities [3][4]. Group 4: Market Dynamics - The Hong Kong market is becoming increasingly attractive due to its higher dividend yields and significant valuation discounts compared to A-shares [8]. - The ongoing release of institutional benefits in Hong Kong is expected to enhance its appeal to cross-border investments [8]. - Despite geopolitical tensions, the Hong Kong market has shown resilience, achieving a 20% increase in performance, making it a leading financial center [8].