Group 1 - The core viewpoint of the news is the introduction of a long-term assessment mechanism for state-owned commercial insurance companies, which aims to enhance their performance evaluation standards and promote stable long-term investments [1] - The new assessment mechanism adjusts the net asset return rate evaluation from "annual indicators + three-year cycle indicators" to "annual indicators + three-year cycle indicators + five-year cycle indicators," with respective weights of 30%, 50%, and 20% [1] - The capital preservation and appreciation rate evaluation for state-owned capital has also been modified to include a five-year cycle, with the same weight distribution [1] Group 2 - The adjustment in the assessment mechanism is expected to encourage state-owned commercial insurance companies to focus more on long-term returns and mitigate short-term behaviors, thereby reducing the impact of market volatility on annual evaluation results [1] - As of the end of 2024, the balance of commercial insurance funds in China is approximately 33 trillion yuan, with about 11% of actual investments in A-shares, indicating significant room to reach the 25% average policy limit [1] - The long-term assessment mechanism is a key measure to enhance the stability and positivity of various funds' stock investments [1] Group 3 - In a declining interest rate environment, stable and high dividend income is seen as beneficial for insurance funds, providing continuous cash flow and aiding in the long-term stable operation of insurance funds [2] - Insurance funds are currently reducing preset interest rates while directing funds towards undervalued high-dividend targets, aligning with the need for stable cash flow [2] - For individual investors seeking to diversify risks, index investment tools such as Hong Kong Stock Connect financial ETFs and Hong Kong central enterprise dividend ETFs can be considered [2]

Core Viewpoint - The recent surge in insurance capital's stock acquisitions, marking a new wave of investment activity, reflects a strategic shift in asset allocation and operational adjustments in response to the evolving economic landscape [2][18][19]. Group 1: Insurance Capital Activity - Insurance companies have initiated a record 21 stock acquisitions as of July 22, surpassing the total for 2021-2023 and setting a five-year high [2][10]. - The latest acquisitions include significant purchases by Zhongyin Life and Taikang Life, with Zhongyin acquiring 726,000 shares of Green Power Environmental, reaching a 5.0722% stake [7][6]. - The trend of stock acquisitions has been consistent, with four instances occurring in July alone, indicating a robust interest from various insurance firms [5][6]. Group 2: Investment Strategy and Market Conditions - The current investment strategy emphasizes high-dividend stocks and long-term equity investments, driven by a low-interest-rate environment and new financial regulations [11][18]. - The insurance sector is increasingly focusing on stable, high-yield investments to enhance returns, with a notable shift towards equities as a means to navigate low returns from traditional fixed-income assets [18][19]. - The ongoing policy support for long-term investments is expected to further expand the space for equity asset allocation among insurance companies [19][22]. Group 3: Historical Context and Future Outlook - This marks the third wave of stock acquisitions in the past decade, with previous surges occurring in 2015 and 2020, indicating a cyclical pattern in investment behavior [8][9]. - Although the current annual acquisition count has not yet surpassed the previous waves, the duration and total volume of acquisitions since 2024 have already exceeded the second wave [9]. - The focus on banking stocks remains prominent, with significant investments in major banks, reflecting their stable operations and attractive dividend yields [12][10].

Core Viewpoint - The Ministry of Finance has issued a notification to guide long-term stable investment by state-owned commercial insurance companies, emphasizing a combination of annual and multi-year performance indicators for evaluating their operational effectiveness [1][2]. Group 1: Policy Changes - The performance evaluation indicators for state-owned commercial insurance companies have been adjusted to include a combination of annual indicators and multi-year indicators (3-year and 5-year) [1][2]. - The new evaluation method aims to mitigate the impact of short-term market fluctuations on performance, thereby enhancing the stability of long-term investment behaviors [1][2]. Group 2: Industry Perspective - The notification reflects a strategic direction from policymakers for the insurance industry to focus on high-quality development and long-term stable operations, which will help the industry serve as an economic stabilizer [3]. - The introduction of long-cycle assessments is expected to reduce the pressure of short-term performance evaluations, allowing insurance companies to adhere more firmly to long-term and value investment principles [3]. - This change is anticipated to improve the design and service of insurance products, enhancing customer satisfaction and promoting high-quality development within the insurance sector [3].

Core Viewpoint - The recent notification from the Ministry of Finance aims to guide insurance funds towards long-term stable investments by adjusting the assessment methods for net asset return and capital preservation, implementing a three-tier evaluation system starting from 2025 [1] Group 1: Changes in Assessment Methods - The new assessment framework for insurance companies includes annual indicators, three-year cycle indicators, and five-year cycle indicators with respective weights of 30%, 50%, and 20% [1] - The previous version of the notification had a simpler assessment method with both annual and three-year indicators weighted equally at 50% [1] Group 2: Benefits of Long-Cycle Assessment - Long-cycle assessments can mitigate short-term investment behaviors, allowing companies to focus on identifying and holding long-term valuable assets [2] - In a low-interest-rate environment, insurance funds are pressured to enhance returns, which may require increasing equity investment ratios while ensuring long-term returns through careful stock selection [2] Group 3: Implementation Challenges - The effectiveness of long-cycle assessments relies on translating the pressure of these assessments to individual employees, necessitating a well-structured performance evaluation system [3] - Recommendations include establishing comprehensive investment decision accountability records for employees and optimizing the performance evaluation system to consider contributions from previous investment managers [3] Group 4: Compensation Mechanism - A deferred compensation mechanism is suggested, where the performance-based pay for key decision-makers could be increased to over 60%, with a payment period extending to five years [4] - This approach aims to ensure that the long-term investment philosophy is effectively integrated into the company's operational framework [4]

Core Viewpoint - The article emphasizes the need for state-owned commercial insurance companies to focus on long-term investment strategies, optimize asset allocation, and enhance the ability to generate stable long-term returns, thereby contributing to the preservation and appreciation of state-owned capital while actively serving the real economy [1][3]. Group 1: Long-term Investment Strategy - State-owned commercial insurance companies are encouraged to adopt a long-term perspective in their operations, enhancing their capacity for long-term fund management and optimizing asset allocation to achieve stable long-term returns [1][3]. - The Ministry of Finance has issued a notice to increase the weight of long-term performance indicators in the evaluation of state-owned commercial insurance companies, guiding insurance funds towards stable long-term investments [1][2]. Group 2: Performance Evaluation System - The performance evaluation system for state-owned financial enterprises, including commercial insurance companies, assesses four categories: service to national development goals, quality of development, risk prevention, and operational efficiency [2][4]. - The new regulations enhance the long-cycle assessment of state-owned commercial insurance companies by adjusting the evaluation metrics to include annual, three-year, and five-year indicators, thereby promoting long-term investment behavior [3][4]. Group 3: Role in Capital Markets - Insurance funds are characterized by stable sources, large scales, and long durations, making them crucial "long money" investors in the capital market [2][4]. - The adjustment in performance evaluation aims to reduce the emphasis on short-term performance, encouraging insurance companies to engage in long-term, value-based, and stable investments, thus increasing the supply of medium- and long-term funds in the capital market [3][4].

Investment Rating - The industry investment rating is "Overweight," indicating that the industry index is expected to outperform the CSI 300 index by 10% or more over the next six months [8]. Core Insights - The report highlights the acceleration in the approval of virtual asset trading licenses for brokerages, suggesting a positive impact on sales momentum driven by adjustments in preset interest rates [5]. - The implementation of long-term performance evaluations for state-owned insurance companies is expected to guide long-term capital into the market, enhancing the stability and growth of insurance funds [5]. - The report emphasizes the need for insurance companies to shift from a trading-oriented approach to a more allocation-focused strategy, driven by new accounting standards and regulatory changes [5]. Summary by Sections Investment Highlights - The Ministry of Finance issued a notice on July 11, 2025, to guide insurance funds towards long-term stable investments, emphasizing the importance of long-term performance evaluations [5]. - The new evaluation framework includes a 70% weight on long-term performance metrics, reducing the impact of short-term market fluctuations [5]. - As of Q1 2025, the balance of funds utilized in the insurance industry was 37.84 trillion yuan, with equity asset allocation at only 20.1%, indicating room for growth in this area [5][7]. Regulatory Policies - A series of regulatory documents have been issued to promote long-term capital market participation, including guidelines for three-year performance evaluations for various funds [6]. - The adjustments in performance evaluation criteria aim to enhance the focus on long-term capital preservation and growth for state-owned insurance companies [6]. Investment Recommendations - The report suggests continued attention to the life insurance sector's capacity improvement and the release of demand following increased awareness of insurance needs [5]. - It is recommended to focus on large listed insurance companies with strong competitive advantages, as the sector is currently undervalued [5].

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core View On July 11, the capital market showed a complex situation. The capital side slightly tightened, the bond market was weakly volatile, the convertible bond market had mixed performance, and the yields of U.S. and European government bonds generally increased. There were also significant events in domestic and international policies, as well as price changes in commodities [1]. 3. Summary by Directory 3.1 Bond Market News - **Domestic News** - The Ministry of Finance requires state - owned insurance companies to implement long - cycle assessment from 2025, adjusting ROE and capital preservation and appreciation rate to "annual + three - year + five - year" indicators [3]. - The Financial Regulatory Administration issued the "Measures for the Suitability Management of Financial Institution Products", which will take effect on February 1, 2026 [4]. - The NAFMII launched a self - regulatory investigation into 6 lead underwriters [4]. - The first batch of 10 science - innovation bond ETFs raised a total of 289.88 billion yuan and will be listed on July 17. Fund companies are preparing for the second batch [5]. - **International News** - Trump announced that the U.S. will impose a 30% tariff on products from Mexico and the EU starting from August 1, 2025, and other trading partners may face 15% - 20% tariffs [6]. - **Commodities** - On July 11, international crude oil futures prices turned up, and natural gas prices continued to rise. WTI August crude oil futures rose 2.8%, Brent September crude oil futures rose 2.5%, COMEX gold futures rose 1.41%, and NYMEX natural gas prices rose 0.24% [7]. 3.2 Capital Side - **Open Market Operations** - On July 11, the central bank conducted 847 billion yuan of 7 - day reverse repurchase operations, with a net investment of 507 billion yuan after deducting the maturity amount [9]. - **Funding Rates** - On July 11, the capital side slightly tightened. DR001 rose 2.00bp to 1.343%, and DR007 fell 2.27bp to 1.472% [10]. 3.3 Bond Market Dynamics - **Interest - rate Bonds** - **Spot Bond Yield Trends**: On July 11, the bond market was weakly volatile. The yield of the 10 - year treasury bond active bond 250011 rose 0.65bp to 1.6660%, and the yield of the 10 - year CDB bond active bond 250210 rose 0.50bp to 1.7430% [13]. - **Bond Tendering**: Information on the tendering of 25 Attached - interest Treasury Bond 12 (re - issuance) and 25 Attached - interest Treasury Bond 10 (second re - issuance) is provided [15]. - **Credit Bonds** - **Secondary Market Transaction Abnormalities**: On July 11, the transaction prices of 3 industrial bonds deviated by more than 10%. "19 Baolong MTN002" fell more than 67%, "H0 Baolong 04" rose more than 122%, and "H1 Bidi 02" rose more than 192% [15]. - **Credit Bond Events**: Multiple companies such as Gome Electric Appliance, Orient Fashion, and Jiaoda Angli announced significant events including new enforcement information, pre - reorganization, and being investigated by the CSRC [16]. - **Convertible Bonds** - **Equity and Convertible Bond Indexes**: On July 11, the three major A - share indexes rose. The convertible bond market was divided, with the CSI Convertible Bond and Shenzhen Convertible Bond indexes rising 0.03% and 0.20% respectively, and the Shanghai Convertible Bond index falling 0.08% [18]. - **Convertible Bond Tracking**: Information on the listing, conversion price adjustment, and early redemption of multiple convertible bonds is provided [24]. - **Overseas Bond Markets** - **U.S. Bond Market**: On July 11, the yields of U.S. bonds across all maturities generally increased, and the yield spreads of some maturities widened. The 10 - year inflation - protected Treasury bond (TIPS) break - even inflation rate rose 3bp to 2.37% [20][22]. - **European Bond Market**: On July 11, the 10 - year government bond yields of major European economies generally increased [23]. - **Chinese - funded U.S. Dollar Bonds**: The daily price changes of Chinese - funded U.S. dollar bonds as of July 11 are presented, including the price changes of bonds of companies such as Ideal Auto and CNOOC [25].

Investment Rating - The report maintains an "Overweight" rating for the insurance industry, indicating an expectation that the industry index will outperform the market index by more than 10% over the next six months [1][8]. Core Insights - The recent adjustment in the evaluation method for insurance funds' net asset return and capital preservation rate emphasizes long-term performance, with a weight distribution of 30% for the current year, 50% for a three-year cycle, and 20% for a five-year cycle, effective from 2025 [3][5]. - The report highlights that the allocation of insurance capital to equity assets needs to be increased, as the current investment in A-shares is only about 11% of the total insurance fund utilization balance of approximately 33 trillion yuan by the end of 2024, which is significantly below the 25% policy cap [4][5]. - The shift towards long-term assessments is expected to encourage insurance companies to increase their equity investments, aligning with their long-term, stable investment characteristics and improving their investment strategies [5][6]. Summary by Sections Policy Changes - The Ministry of Finance's new guidelines aim to guide insurance funds towards long-term, stable investments, addressing the current short-term focus that has hindered the sector's growth [3][4]. Market Dynamics - The report notes that the lack of mid-to-long-term funds is a significant constraint on the healthy development of the capital market, and the adjustment in evaluation metrics is a step towards alleviating this issue [4][5]. Investment Strategy - The report suggests focusing on stable companies such as China Pacific Insurance (601601), Ping An Insurance (601318), and New China Life Insurance (601336) as potential investment opportunities due to their robust operational performance and asset flexibility [6].

文字早评 2025/07/14 星期一 宏观金融类 4、英伟达：英伟达首席执行官黄仁勋将于 7 月 16 日在北京召开新闻发布会。 5、财政部近日印发《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》 提出：国有险企今年起全面落地三年以上长周期考核，增加五年周期指标。引导其更好发挥长期机构投 资者的作用。 6、近日，中国移动采购与招标网显示，智元和宇树中标机器人大单。 期指基差比例： IF 当月/下月/当季/隔季：-0.01%/-0.37%/-0.53%/-1.23%； IC 当月/下月/当季/隔季：-0.07%/-0.89%/-1.77%/-3.87%； IM 当月/下月/当季/隔季：-0.13%/-1.12%/-2.19%/-5.03%； IH 当月/下月/当季/隔季：-0.08%/-0.21%/-0.19%/-0.15%。 交易逻辑：海外方面，近期主要关注点在美国对各国征收关税带来的影响。国内方面，重点关注 7 月份 "中央政治局会议"预期。近期防内卷及稳定币等题材带动市场风偏提升，相关权重带动股指出现反弹。 策略上，关注市场风格转换的机会，建议逢低做多 IF 股指期货。 股指 ...

Group 1 - The Ministry of Finance has issued a notice to guide insurance funds towards long-term stable investments, emphasizing a three-year long-cycle assessment mechanism with increased weight on net asset return and capital preservation metrics [1] - The long-cycle assessment aims to reduce anxiety over short-term performance fluctuations, encouraging insurance funds to focus on long-term investments, which historically yield higher returns [2] - The recent surge in insurance capital's stake acquisitions, nearly 40 instances, reflects a response to regulatory calls for insurance capital to act as patient capital and a stabilizing force in the market [3] Group 2 - The current low interest rate environment is driving insurance companies to seek high-dividend stocks as a strategy to mitigate risks associated with interest rate and fee losses [3] - The shift towards long-term investment strategies is indicative of a broader market and policy transformation, influenced by factors such as low interest rates and the need to boost capital markets [4] - The global landscape is undergoing significant changes, necessitating a supportive environment for long-term investments to counteract rising uncertainties and market volatility [5]