Core Viewpoint - The Ministry of Finance issued a notification to guide insurance funds towards long-term and stable investments, enhancing the long-cycle assessment of state-owned commercial insurance companies, effective immediately and applicable for the 2025 performance evaluation [1] Group 1: Long-term Investment Strategy - The notification encourages insurance funds to act as a stabilizing force in the market, promoting long-term capital and patient capital strategies [1][3] - It aims to increase the tolerance of insurance companies towards short-term market fluctuations, thereby enhancing their equity and long-term investment capabilities [1][2] Group 2: Performance Evaluation Adjustments - The performance evaluation metrics for state-owned insurance companies have been revised to include a combination of annual, 3-year, and 5-year indicators, with respective weights of 30%, 50%, and 20% [2] - This adjustment is expected to significantly reduce the impact of short-term market volatility on the performance evaluations of state-owned insurance companies [2][4] Group 3: Asset-Liability Management - The notification emphasizes the need for improved asset-liability management among insurance companies, advocating for stable, long-term, and value-based investment approaches [5] - Companies are encouraged to align their investment strategies with their liabilities, thereby increasing the supply of medium- and long-term funds in the capital market [4][5] Group 4: Regulatory Context - The notification is part of a broader regulatory trend aimed at promoting medium- and long-term capital market participation, following several initiatives earlier in the year [6] - Recent regulatory changes have included raising the investment cap for equity assets and reducing risk factors for stock investments, indicating a supportive environment for long-term investments [6]

Core Viewpoint - The Ministry of Finance has issued a notification to implement a long-term assessment framework for state-owned insurance companies, emphasizing the importance of long-term, stable investments to mitigate market volatility and enhance the role of insurance funds as stabilizers in the market and drivers of economic development [1][3]. Summary by Sections Long-term Assessment Implementation - Starting from the performance evaluation for the year 2025, state-owned insurance companies will adopt a three-year and five-year assessment framework alongside annual indicators [2][8]. Performance Evaluation Metrics - The net asset return rate will now be assessed using a combination of annual, three-year, and five-year indicators, with respective weights of 30%, 50%, and 20% [1][4]. - The capital preservation and appreciation rate will also shift to include annual, three-year, and five-year indicators, maintaining the same weight distribution [1][6]. Asset-Liability Management - State-owned insurance companies are required to enhance their asset-liability management, ensuring alignment in terms of duration structure, cost-benefit, and cash flow [7]. Investment Strategy - Emphasis is placed on prudent management, with a focus on long-term, value-based investments, and the identification of quality investment targets that offer stable returns and growth potential [7][8]. Investment Management Capability - Companies must strengthen their investment management capabilities, adhering to internal investment management systems, and improving decision-making and risk assessment processes [7].