Hua Er Jie Jian Wen·2026-01-08 11:59Core Viewpoint - Ping An Life has significantly increased its stake in China Merchants Bank (CMB) H-shares, reaching the 20% threshold by December 31, 2025, reflecting a strategic investment in bank stocks amid a favorable environment for insurance capital [1][2]. Group 1: Investment Strategy - Ping An has made its fourth public stake increase in CMB H-shares within a year, indicating a consistent strategy of acquiring bank stocks, which has become common among insurance funds [2]. - By the end of 2025, Ping An Life's holdings in CMB H-shares reached a book value of 43.956 billion yuan, demonstrating a clear and decisive increase from 5% to 20% [3]. - The long-term downtrend in interest rates has prompted insurance funds to seek stable and generous asset pools, with CMB fitting this profile perfectly [3]. Group 2: CMB's Performance - CMB continues to hold its position as the "king of retail," achieving steady profit growth in the first half of 2025 despite industry-wide pressure on interest margins [4]. - The bank maintains a high provision coverage ratio and outstanding asset quality compared to peers, making it an attractive investment [4]. - CMB's dividend distribution of 2.00 yuan per share for the 2024 fiscal year translates to a high H-share dividend yield, appealing to Ping An Life's need for long-duration matching assets [4]. Group 3: Ping An's Financial Health - Ping An experienced a nearly 50% increase in net profit for 2024, with a 3.7% growth in operating profit for the first half of 2025, indicating strong financial resilience [5]. - The company benefits from a continuous double-digit growth in new business value in life insurance, providing a steady source of capital for investments [5]. - Current market conditions are viewed as a favorable window for insurance capital allocation, supported by regulatory encouragement for long-term funds to enter the market [5]. Group 4: Market Implications - The strategy of increasing holdings in CMB reflects a significant bet on future certainty of returns, as low volatility and high dividends gain consensus in the market [6]. - The effectiveness of this "heavy dividend" strategy will not only impact Ping An's investment returns but also serve as an important case study for observing trends in the era of large asset management [6].