Hu Xiu·2025-07-09 00:43Core Viewpoint - The influx of 222 billion insurance funds into the capital market through long-term stock investment trials is a self-rescue action by the insurance industry in the context of declining interest rates and increasing risks of interest spread losses [1][29]. Group 1: Long-term Investment Trials - The long-term investment reform trial for insurance funds involves setting up private equity investment funds primarily targeting the secondary stock market, with a total approved scale of 222 billion yuan across three batches [1][9]. - The first batch includes China Life and New China Life with a combined scale of 50 billion yuan, while the second batch consists of eight companies totaling 112 billion yuan, and the third batch is expected to reach 60 billion yuan [1][9]. - The increase in long-term funds is expected to enhance the proportion of equity assets in insurance companies' investment portfolios, potentially improving investment returns [1]. Group 2: Impact on Insurance Products - The rise in equity investment returns may encourage insurance companies to promote floating yield products, which could drive innovation and sales growth in liability-side insurance products [2]. - Insurance companies are expected to actively adjust their product structures to reduce reliance on interest spreads, with a focus on increasing the proportion of dividend-type products [24][27]. - Companies like China Life and New China Life are shifting their investment strategies towards high-dividend stocks to counteract the profit decline caused by traditional insurance spread losses [8][19]. Group 3: Policy Support - The central government has issued guidelines to promote long-term capital market investments by insurance institutions, aiming to establish them as stable long-term investors [9]. - By 2025, it is targeted that 30% of new premiums from large state-owned insurance companies will be allocated to A-share investments [9]. - Regulatory adjustments have increased the allowable proportion of equity assets for insurance funds, providing additional capital market space [9][10]. Group 4: Investment Preferences - The first batch of trial funds, such as Honghu Zhiyuan, has shown a preference for high-dividend assets, achieving returns above benchmarks [13][15]. - The second and third batches are also focusing on high-dividend assets while incorporating investments in emerging industries aligned with national development strategies, such as high-end manufacturing and artificial intelligence [17][18]. - The investment strategies of various insurance companies indicate a shift towards stable, high-dividend stocks to mitigate risks associated with low interest rates [15][19]. Group 5: Competitive Landscape - The influx of long-term funds is likely to exacerbate the "Matthew Effect" in the insurance industry, favoring larger companies with stronger financial and research capabilities [28][29]. - Smaller insurance companies may struggle to compete effectively, facing challenges in product sales and investment outcomes due to limited resources and expertise [29]. - The overall competitive advantage and risk resilience of companies participating in the long-term investment trials are expected to strengthen, leading to a more pronounced market share expansion for leading firms [27][29].