Core Viewpoint - The establishment of a long-cycle assessment mechanism for insurance funds aims to shift the focus from short-term profit-seeking to long-term stable investment, enhancing the overall investment logic of insurance capital [2][4][6]. Group 1: Long-Cycle Assessment Mechanism - The long-cycle assessment mechanism addresses the "long money, short investment" dilemma by increasing the weight of long-term indicators such as net asset return and capital preservation to 70% [4][10]. - This mechanism is expected to stabilize market fluctuations, introduce incremental funds, and optimize the investment ecosystem by focusing on high-dividend and technology growth sectors [4][5][10]. - Insurance funds are encouraged to adopt a long-term investment approach, which aligns with their inherent characteristics and supports the stability of the capital market [5][6][12]. Group 2: Impact on Capital Market - The increase in insurance capital's A-share investment ratio is anticipated to benefit dividend assets and high-quality growth sectors, promoting a shift towards value investment in the market [3][15]. - The long-cycle assessment mechanism will reduce the impact of short-term market volatility on investment decisions, allowing insurance companies to focus on fundamental value and long-term growth potential [5][6][7]. - The expected influx of insurance capital into the market could lead to a significant increase in A-share investment, potentially injecting over 3.5 trillion yuan in new funds if equity allocation rises to 15% [4][11][12]. Group 3: Policy Support for Insurance Capital - Recent policies have been implemented to encourage insurance capital to enter the market, aiming to leverage its long-term stable funding advantages to support capital market stability and economic development [8][9]. - Future policies are expected to further optimize the investment environment for insurance capital, including lowering stock investment risk factors and expanding pilot programs for long-term equity investments [9][10]. - The ongoing policy framework is designed to address the needs of insurance companies while promoting high-quality development in the capital market [10][12]. Group 4: Role of Public Funds - Public funds are positioned as key partners for insurance companies in equity investment, with opportunities for significant business growth in areas such as customized accounts and low-volatility dividend products [19][20]. - The demand for public funds is expected to rise as insurance capital increases its allocation to equity assets, particularly in index funds and thematic funds that align with insurance capital's investment strategies [19][20]. - Public funds can help insurance companies optimize their asset allocation through professional investment management and a diverse product lineup [20][21].

Core Viewpoint - The establishment of a long-cycle assessment mechanism for insurance funds aims to shift the focus from short-term profit-seeking to long-term stable investment, enhancing the investment logic of insurance capital [4][14][16]. Group 1: Long-Cycle Assessment Mechanism - The core value of the long-cycle assessment mechanism is to break the "long money short investment" dilemma, reshaping the investment logic of insurance capital [4][14]. - The adjustment of key indicators' assessment weights to 70% for long-cycle metrics significantly reduces the impact of short-term market fluctuations on insurance companies' profits, promoting a shift towards long-term value investment [14][15]. - The long-cycle assessment mechanism is expected to stabilize market fluctuations, introduce incremental funds, and optimize the investment ecosystem by focusing on high-dividend and technology growth sectors [14][15][16]. Group 2: Impact on Capital Market - The long-cycle assessment mechanism will enhance insurance companies' resilience to short-term investment volatility, supporting an increase in equity investment ratios and stabilizing the stock market [10][16]. - Insurance capital's entry into the market can increase the supply of long-term funds, helping to lower market volatility and guide funds towards high-potential enterprises [16][17]. - The mechanism encourages insurance funds to strengthen asset-liability management and actively seek quality long-term targets, promoting a shift from passive following to active leading in industry trends [16][17]. Group 3: Encouragement of Insurance Capital Market Entry - Recent policies have been encouraging insurance capital to enter the market, aiming to leverage its long-term stable funding advantages to support capital market stability and real economic development [19][20]. - Future policies are expected to focus on lowering risk factors for stock investments and expanding pilot programs for long-term equity investments [20][21]. - The continuous improvement of policies is anticipated to enhance the enthusiasm of insurance capital for market entry, with expectations for more encouraging measures to be introduced [21][22]. Group 4: Potential for Market Capital Injection - As of the end of 2024, the balance of commercial insurance funds is expected to be approximately 33 trillion yuan, with an actual investment ratio in A-shares around 11%, indicating significant room for growth [23][24]. - If the equity allocation increases by 10 percentage points, it could lead to an injection of approximately 3.5 trillion yuan into the market [24][25]. - The long-cycle assessment mechanism is projected to release the equity investment potential of insurance funds, particularly benefiting high-dividend and undervalued quality listed companies [25][26]. Group 5: Long-Term Investment Benefits - In a low-interest-rate environment, the long-cycle assessment mechanism is expected to enhance the long-term investment yield of insurance funds by allowing for greater allocation to equity assets [27][28]. - The mechanism encourages insurance funds to adopt a "dividend for interest" strategy, alleviating investment pressure in a low-interest environment and improving long-term investment yield levels [28][29]. - By allowing for smoother management of asset value fluctuations, the long-cycle perspective helps insurance funds focus on intrinsic asset value, reducing irrational trading caused by short-term interest rate fluctuations [29][30]. Group 6: Shift in Investment Style - The increase in insurance capital's investment ratio in A-shares is expected to promote a shift in market style towards value investment, enhancing market stability [31][32]. - Insurance funds typically adopt a "barbell" investment strategy, focusing on both high-dividend and high-growth sectors, which will benefit from the increased allocation of insurance capital [31][32][33]. - The investment style transition is likely to reduce speculative trading and increase the focus on long-term cash flow stability and sustainable dividend capabilities [33][34]. Group 7: Opportunities for Public Funds - Public funds are expected to play a crucial role as a bridge for insurance companies' equity investments, with significant business growth potential in various areas [35][36]. - The development of products that meet the investment needs of insurance funds, such as low-volatility dividend products and REITs, is anticipated to attract insurance capital [35][36]. - Customized account services and specialized products are expected to meet the specific needs of insurance funds, driving the public fund industry towards a more segmented and professional direction [36][37].

Core Viewpoint - The recent notification from the Ministry of Finance aims to guide insurance funds towards long-term stable investments, enhancing the assessment of state-owned commercial insurance companies over longer periods, which is expected to improve the stability of their profitability and increase their market participation [1][2][4]. Group 1: Notification Overview - The notification was released on July 11, focusing on enhancing the long-term assessment of state-owned insurance companies, thereby increasing their investment capacity in the market [2]. - The notification builds on previous measures, such as the performance evaluation method for commercial insurance companies introduced in July 2022, which assesses financial indicators like capital preservation and net asset return [2][3]. Group 2: Long-term Investment Strategy - The notification modifies the assessment of operational efficiency indicators, changing the evaluation of net asset return and capital preservation from a short-term focus to a combination of annual, three-year, and five-year indicators [3]. - It emphasizes the need for better asset-liability matching, urging state-owned insurance companies to enhance their management of assets and liabilities to optimize investment strategies [3]. Group 3: Market Impact - The notification is expected to increase the tolerance for short-term volatility among insurance funds, encouraging a focus on long-term value investments, which will stabilize the supply of long-term capital in the market [4]. - The overall goal is to create a "long money, long investment" ecosystem in the capital market, which will support the high-quality development of the real economy [2][3].