Market Overview and Key Insights - The Hong Kong dividend sector continued to rise last week, outperforming the broader market, with the Hang Seng China Central State-Owned Enterprises Dividend Total Return Index increasing by 1.74%, compared to a 0.93% rise in the Hang Seng Index and a 0.62% rise in the Hang Seng Tech Index [1] - Foreign capital inflow expanded, with net inflow into Hong Kong stocks reaching $1.023 billion, up from $916 million the previous week, while southbound funds saw a net inflow of HKD 26.4 billion [1] Insurance Capital and Long-term Investment - Recent regulatory changes encourage insurance funds to adopt a long-term investment strategy, shifting the assessment of net asset return rates from a 3-year and annual indicator to a combination of annual, 3-year, and 5-year indicators with respective weights of 30%, 50%, and 20% [1] - Insurance capital is expected to become a significant source of incremental funds in the stock market, with a requirement for state-owned large insurance companies to invest 30% of new premiums in A-shares, potentially adding thousands of millions in long-term capital annually [2] Dividend Strategy and Valuation - The dividend yield of the Hang Seng China Central State-Owned Enterprises Dividend Index is 5.86%, compared to 4.82% for the CSI Dividend Index, with a price-to-book (PB) ratio of 0.64 and a price-to-earnings (PE) ratio of 6.96 [2] - The total return index has achieved a cumulative return of 123% since early 2021, outperforming the Hang Seng Total Return Index by 118% [2] ETF Overview - The Huaan Hong Kong Stock Connect Central State-Owned Enterprises Dividend ETF (513920) tracks the Hang Seng China Central State-Owned Enterprises Dividend Index and is the first ETF in the market with the combined attributes of Hong Kong stocks, central state-owned enterprises, and dividends [3] Fund Performance - The net asset value of the Huaan Hong Kong Stock Connect Central State-Owned Enterprises Dividend ETF is 7.66 billion [4] - Key holdings include China COSCO Shipping (4.6% weight, 12.9% dividend yield), Orient Overseas International (4.4% weight, 11.3% dividend yield), and New China Life Insurance (3.9% weight, 6.4% dividend yield) [5]

Core Viewpoint - The recent initiatives by the Ministry of Finance and other regulatory bodies aim to guide insurance funds towards long-term and stable investments, enhancing the performance evaluation system for state-owned commercial insurance companies, which is seen as a crucial step for stabilizing the capital market [6][9]. Group 1: Insurance Funds and Capital Market - Insurance funds are characterized as long-term and patient capital, making them naturally suitable for long-term investment needs in the capital market [8][9]. - As of the end of the first quarter, the balance of funds utilized by insurance companies reached 34.93 trillion yuan, indicating a significant potential for long-term investments [8]. - China Life Asset Management, as a major player, aims to reshape the value investment paradigm in the capital market by increasing equity investment proportions and providing stable long-term funding [7][9]. Group 2: Long-term Investment Initiatives - The "Honghu Fund," initiated by China Life and Xinhua Insurance, is a pilot fund with a total scale of 50 billion yuan, focusing on long-term investments in companies with strong competitive advantages [9]. - The push for long-term investment reform is a key focus for regulatory bodies, with China Life Asset Management being one of the first participants in this initiative [9][10]. Group 3: Challenges and Opportunities - The insurance sector faces challenges such as the need for improved risk management tools and a shift from short-term to long-term investment strategies [11][13]. - There is a call for enhancing the investment capabilities of insurance funds, particularly in navigating complex global capital markets and optimizing investment frameworks [13][15]. - The low interest rate environment and insufficient supply of quality assets highlight the necessity for insurance funds to increase their equity asset allocation [15][16]. Group 4: Bank Wealth Management - Bank wealth management is increasingly entering the capital market, with institutions like Everbright Wealth Management leading the way in equity investments [17][18]. - As of June, the proportion of equity products in Everbright's wealth management offerings exceeded 7%, reflecting a significant increase in equity asset allocation [19]. - The shift towards equity investment is seen as a necessary response to the limitations of fixed-income assets in a low-interest-rate environment [20][21]. Group 5: Regulatory and Structural Adjustments - There is a need for regulatory adjustments to support long-term investments, including optimizing accounting standards and enhancing the matching mechanism between client risk profiles and asset styles [30][31]. - The establishment of a multi-dimensional evaluation system for long-term investments is essential to support investment teams in maintaining a focus on fundamental research during market fluctuations [30][31].

Core Viewpoint - The article emphasizes the necessity and feasibility of increasing equity asset allocation by insurance funds, highlighting the importance of value investing and long-term investment strategies in the current macroeconomic environment [2][3]. Group 1: Investment Strategy - Insurance funds should return to the essence of value investing, focusing on acquiring assets at reasonable prices to achieve long-term growth and returns [3]. - Key investment strategies include prioritizing stable holdings in FVOCI stocks, strategic stakes in companies, and long-term partnerships [3][4]. - The selection criteria for investment targets should include long-term competitiveness, sustainable profitability, operational stability, and shareholder return capabilities [4]. Group 2: Focus Areas for Investment - Key investment opportunities identified include new productive forces, new economy sectors, high-dividend assets, and overseas expansion of manufacturing and consumer brands [5][6]. - The technology growth sector, particularly in AI and robotics, is highlighted as a significant area for long-term investment [5]. - Traditional industries with stable earnings and reasonable valuations are also seen as viable investment options [5][6]. Group 3: Market Environment and Recommendations - The article discusses the need for a conducive environment for long-term capital investment, suggesting improvements in the regulatory framework and market mechanisms [8][9]. - Recommendations include enhancing market infrastructure, optimizing IPO and refinancing policies, and improving investor protection mechanisms [8][9]. - The article advocates for differentiated capital measurement and the introduction of counter-cyclical adjustment factors to encourage long-term investments by insurance funds [9].

日前，财政部发布《关于引导保险资金长期稳健投资 进一步加强国有商业保险公司长周期考核的通 知》，推动保险资金全面建立三年以上长周期考核机制。其中，对净资产收益率和资本保值增值率这两 大指标的评价，三年、五年的长周期考核权重提升至70%。 低利率势大力沉，并且低利率预期还在不断形成之中。无论是银行存款利率还是国债收益率，都在持续 走低。银行陷入净息差的煎熬之中，保险则全力预防"利差损"和"费差损"的风险，利率和费率进入下降 通道。 今年1月，中央金融办等六部门联合发布了《推动中长期资金入市工作的实施方案》，明确提出大型险 企每年新增保费的30%，要投向A股。作为"长钱长投"的代表，顶层设计之下，险资入市的各种配套执 行政策正逐步到位。 长周期考核之于险资决策的影响是显而易见的，加大在资本市场权益投资比例和加大对科技企业长期资 金支持，都是人们期待出现的变化。 推动中长期资金入市，是国家既定战略方向。相较其他中长期资金，险资不仅拥有规模优势，同时还拥 有久期优势，跨周期和逆周期能力更胜一筹。因此，循着国家大势，险资若能乘势而上，既能事倍功 半，也能一举突破既有市场窠臼。 生逢其时！ 长周期考核，最直接的影响，就是 ...

Core Insights - The article emphasizes the increasing alignment of insurance capital with "long money and long investment" strategies in the market [1] - It highlights the acceleration of insurance funds entering the market as a result of supportive policies and growing allocation needs [1] Group 1: Policy and Market Dynamics - Continuous policy collaboration has led to a significant shift of insurance funds towards patient, strategic, and long-term capital [1] - Insurance capital is becoming a crucial institutional investor in the capital market, enhancing its interaction with the market [1] Group 2: Investment Strategies - The focus on "long money and long investment" is driving the introduction of new policies aimed at increasing the scale, expanding channels, and improving assessments of insurance capital [1] - Insurance funds are building a solid foundation of quality core assets to withstand market cycles, thereby enriching the long-term liquidity of the capital market [1] Group 3: Market Interaction - A more stable allocation of equity assets by insurance capital is fostering a healthy interaction with the capital market [1] - This interaction is seen as a way to provide sustainable liquidity for the healthy operation of the capital market [1]

Group 1 - The core viewpoint of the article emphasizes the ongoing push for long-term investment by insurance funds, supported by favorable policies and a focus on stable capital allocation [1][2] - The Ministry of Finance has issued a notice to enhance the long-term assessment of state-owned commercial insurance companies, adjusting the evaluation metrics to include longer periods, which encourages a more stable investment approach [1][2] - The establishment of a long-cycle assessment mechanism reduces the constraints on the market value fluctuations of insurance fund holdings, promoting a more stable investment behavior [2][3] Group 2 - Insurance funds are increasingly focusing on equity investments due to the low interest rate environment, seeking growth opportunities beyond fixed-income assets [3] - The recent establishment of private equity funds, such as the Honghu Fund, represents a significant step in the long-term investment pilot program, with a total approved scale exceeding 200 billion yuan [3][4] - The investment strategy of these funds is primarily directed towards large-cap stocks with stable governance and good liquidity, aligning with the principles of long-term capital investment [5]

Group 1 - The core viewpoint of the articles highlights the acceleration of insurance capital's entry into the market, driven by a series of supportive policies aimed at promoting long-term investments [1][2][4] - Insurance capital has made 19 equity stakes in listed companies this year, which is consistent with the total from the previous year, indicating a stable investment trend [2][4] - The implementation of policies such as increasing the proportion of equity asset allocation and expanding long-term investment pilot programs has provided more opportunities for insurance capital to invest [2][4][5] Group 2 - A total of 1,720 billion yuan has been approved for long-term investment pilot funds, with many insurance companies actively participating in these initiatives [2][4] - The financial regulatory authority has raised the equity asset allocation limits for insurance companies, potentially increasing their investment capacity by approximately 500 billion yuan [5] - The recent adjustments in risk factors for insurance stock investments are expected to lower the capital requirements, allowing more funds to be allocated to the stock market [5][7] Group 3 - The introduction of a long-term assessment mechanism for state-owned insurance companies aims to encourage a shift from short-term to long-term investment strategies [6][8] - There is a growing interest among smaller insurance companies to participate in long-term stock investment trials, indicating a broader industry trend towards long-term capital deployment [3][4] - Industry experts suggest further optimization of solvency requirements and risk factor assessments to enhance the effectiveness of insurance capital in the market [7][8]

每经评论员 杜恒峰 7月11日，财政部发布《关于引导保险资金长期稳健投资 进一步加强国有商业保险公司长周期考核的通 知》（以下简称《通知》），对国有商业保险公司经营效益类绩效评价指标作出重大调整，核心内容有 二：其一，将净资产收益率考核由"当年度指标+3年周期指标"调整为"当年度指标+3年周期指标+5年周 期指标"，三者权重分别为30%、50%和20%；其二，把资本保值增值率指标从"当年度指标"调整为"当 年度指标+3年周期指标+5年周期指标"，权重同样为30%、50%和20%。 首先，被考核对象对投资的考量将以3年作为最小周期。这是因为3年周期指标的权重最高，达到50%， 而且较高的3年期收益率能为5年期考核奠定良好基础。在此情况下，被考核对象追求短期业绩的热情会 大幅降低，年末抱团高位股、扎堆热门赛道博取超额收益等短期行为将有望减少。其次，被考核对象会 有动力降低收益波动率，将长期目标分解到每一年的目标中，通过逐年积累收益率，最终达成较高的考 核收益率。那些初期收益率较低、到最后才"冲刺"的模式将不再"划算"。例如：投资经理在第一年到第 五年的收益率均为10%，5年累计收益率为61.051%，5年考核期结 ...

Investment Rating - The report maintains a positive investment rating for the non-banking sector, highlighting the potential for both beta and alpha resonance in the market due to upcoming mid-year performance catalysts [5]. Core Insights - The introduction of new regulations for insurance capital, promoting long-term investments, is expected to enhance the matching of assets and liabilities for insurance companies, thereby increasing their equity investment ratios and stabilizing profit margins [1]. - The performance of listed securities firms is anticipated to show robust growth in the first half of 2025, with several firms projecting significant year-on-year profit increases, driven by active market conditions and improved business operations [2]. - The China Securities Association's new self-regulatory management guidelines aim to enhance the quality of the securities industry, focusing on compliance and risk management, which is expected to support sustainable growth in the sector [3]. Summary by Sections Market Review - Major indices experienced gains, with the Shanghai Composite Index rising by 1.09% and the Shenzhen Component Index increasing by 1.78% during the week of July 7-11, 2025 [8]. Securities Sector - The total trading volume in the A-share market reached 8.80 trillion yuan, with a daily average trading amount of 1.47 trillion yuan, reflecting a 2.25% increase week-on-week and a 118.28% increase year-on-year [17]. - The IPO underwriting scale for the year reached 391.22 billion yuan, while refinancing underwriting amounted to 795.95 billion yuan as of July 11, 2025 [17]. Insurance Sector - The new regulations for insurance capital are expected to improve the long-term investment capabilities of insurance companies, enhancing their ability to provide stable returns and support economic growth [1]. Liquidity Tracking - The central bank conducted a reverse repurchase operation of 425.7 billion yuan, resulting in a net withdrawal of 226.5 billion yuan from the market, indicating tightening liquidity conditions [28]. Investment Recommendations - The report suggests focusing on leading insurance companies such as China Pacific Insurance, Sunshine Insurance, and China Life, as well as top securities firms like CITIC Securities and Huatai Securities, due to their strong market positions and growth potential [39][40].

Core Viewpoint - The article emphasizes the necessity and feasibility of increasing equity asset allocation by insurance funds, highlighting the importance of value investing and long-term investment strategies in the current macroeconomic environment [2][3][4]. Group 1: Value Investment Essence - Insurance funds should return to the essence of value investing, focusing on acquiring assets at reasonable prices to achieve long-term profit growth and investment returns [3][4]. - The investment strategy should prioritize "good companies" and "good returns," aligning with the long-term nature and stability of insurance capital [4][5]. Group 2: Selection Criteria for Investment Targets - Key indicators for selecting investment targets include: - Long-term competitiveness of the enterprise, requiring sustainable competitive advantages and long-term development potential [5]. - Continuous profitability, with financial metrics like ROE, ROIC, EBITDA, and FCFF consistently outperforming industry averages [5]. - Operational stability, characterized by low earnings volatility and strong cash flow predictability [5]. - Shareholder return capability, necessitating a stable dividend policy and a strong dividend record [5]. Group 3: Investment Opportunities - Focus areas for equity investment include: - New productive forces and new economic sectors, particularly in technology and innovation [6][7]. - High dividend, low volatility assets, and traditional industries with stable profitability and reasonable valuations [6][7]. - Opportunities arising from the overseas expansion of manufacturing and consumer brands, which can provide significant investment prospects [7]. - Niche industries with growth potential, such as innovative pharmaceuticals and high-value consumables, benefiting from domestic policy optimization [7]. Group 4: Long-term Investment Environment - The article suggests that the environment for long-term investment needs further optimization, including: - Cultivating a better "soil" for value investing and improving the institutional framework for long-term capital [11][12]. - Enhancing the investment capabilities of insurance funds to ensure they can effectively participate in the capital market [11][12]. - Recommendations include improving market infrastructure, refining IPO and refinancing policies, and enhancing investor protection mechanisms [11][12].