Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - As of Q3 2025, the total balance of insurance companies' funds under management reached 37.46 trillion yuan, a 3.39% increase from Q2 2025. Among them, life insurance companies' funds under management were 33.73 trillion yuan, and property insurance companies' were 2.39 trillion yuan, growing by 3.45% and 1.75% respectively compared to Q2 2025 [2]. - In Q3 2025, the growth of bond investments slowed slightly. The balance of insurance - fund bond investments was 18.18 trillion yuan, with a single - quarter increase of 0.31 trillion yuan in Q3, less than the 0.88 trillion yuan in Q3 2024. However, the actual increase in bond investments in Q3 2025 might be higher if the impact of fair - value changes is excluded. Meanwhile, investments in stocks, securities investment funds, long - term equity investments, and other investments increased year - on - year, while bank deposit investments decreased by 0.16 trillion yuan [2]. - As of Q3 2025, the book balance of insurance funds' stock holdings increased significantly, mainly driven by the strong performance of the stock market in the third quarter. The balance of insurance - fund stock investments was 3.62 trillion yuan, a 49.14% increase from the end of 2024, with a 18% increase in the third quarter, basically in line with the 17.9% increase of the CSI 300 Index [2]. - The proportion of bond investments in property insurance companies increased slightly quarter - on - quarter, while that in life insurance companies decreased. As of Q3 2025, in life insurance companies, the proportion of bond investments decreased by 0.88 pct to 51.02%, and in property insurance companies, it increased by 0.33 pct to 40.62% [2]. - The driving force for insurance - fund bond investments weakened in Q3 2025, with the year - on - year growth rate dropping to 20.95%. The reason might be the slowdown in premium growth due to the significant reduction in insurance interest rates, the focus on dividend - insurance products, and the approaching end of the peak of non - standard investment maturities, which led to a weakened demand for ultra - long bonds [2]. - As of Q3 2025, insurance institutions' main bond investment varieties were interest - rate bonds, followed by financial bonds and medium - term notes. Insurance institutions preferred interest - rate bonds, with interest - rate bonds accounting for 75.78% of their bond investments [2][3]. 3. Summary by Related Content Insurance Companies' Funds Under Management and Asset Allocation - As of Q3 2025, the total balance of insurance companies' funds under management was 37.46 trillion yuan, with life insurance companies at 33.73 trillion yuan and property insurance companies at 2.39 trillion yuan, showing different growth rates compared to Q2 2025 [2]. - The allocation of insurance funds included bank deposits (7.64%), bonds (48.52%), stocks (9.67%), securities investment funds (5.26%), and long - term equity investments (7.59%) [2]. Bond Investments - In Q3 2025, the balance of insurance - fund bond investments was 18.18 trillion yuan, with a single - quarter increase of 0.31 trillion yuan, less than in Q3 2024. The year - on - year growth rate dropped to 20.95% from the previous high level, mainly due to factors such as slowdown in premium growth and weakened demand for ultra - long bonds [2]. - Insurance institutions preferred interest - rate bonds, with interest - rate bonds accounting for 75.78% of their bond investments as of Q3 2025. The total bond custody of insurance institutions was 5.25 trillion yuan, but the custody data did not include asset - management products held by insurance institutions [2][3]. Stock Investments - As of Q3 2025, the balance of insurance - fund stock investments was 3.62 trillion yuan, a 49.14% increase from the end of 2024. The increase in the third quarter was 18%, in line with the performance of the CSI 300 Index, indicating that the growth was driven by the stock - market performance [2]. Asset Allocation Changes in Life and Property Insurance Companies - In life insurance companies, the proportion of bond investments decreased by 0.88 pct to 51.02%, while the proportion of stock investments increased by 1.30 pct to 10.12% as of Q3 2025 [2]. - In property insurance companies, the proportion of bond investments increased by 0.33 pct to 40.62%, and the proportion of stock investments increased by 0.41 pct to 8.74% as of Q3 2025 [2].

Core Insights - The insurance industry is experiencing a significant shift towards long-term equity investments, driven by low interest rates and changes in liability structures, with total insurance assets reaching 35 trillion yuan [1] - Insurers are increasingly focusing on high-dividend assets and long-term equity investments to enhance cash flow and reduce reliance on trading profits [2][3] - Regulatory approvals for pilot projects have led to over 220 billion yuan being allocated to equity investments, with a notable increase in shareholding stakes and strategic investments in high-dividend sectors [2][4] Group 1: Investment Strategies - Insurers are transitioning from trading assets to long-term equity investments, emphasizing stable cash flow and high dividend yields [1][2] - The trend of increasing shareholding stakes, with 22 instances of shareholding increases this year alone, highlights a growing preference for high-dividend sectors such as banking, utilities, and technology [2][3] - The focus on high-dividend assets is a response to the challenges posed by low interest rates and the need for stable returns [4][5] Group 2: Regulatory Environment - The approval of multiple pilot projects by regulatory authorities has facilitated the establishment of private equity funds aimed at long-term stock market investments [2][3] - Despite progress, there are still regulatory hurdles that need to be addressed, including accounting measurement methods and solvency regulations that impact insurers' investment strategies [6][7] - The industry is advocating for a long-term assessment mechanism to better align investment strategies with the inherent long-term nature of insurance operations [7][8] Group 3: Market Dynamics - The current low interest rate environment has led to a shrinking supply of high-yield assets, prompting insurers to seek alternative investment opportunities [5][6] - The shift towards stable dividend-paying assets is seen as a way to mitigate the pressures of high liability costs and interest rate fluctuations [4][5] - Insurers are increasingly utilizing various investment vehicles, including REITs and private equity funds, to diversify their portfolios and enhance returns [3][4]

Core Viewpoint - The article discusses the evolution of equity proprietary trading in the context of the changing market environment, highlighting the transition towards the "OCI+" strategy as a new starting point for brokers' proprietary trading business [1][3]. Group 1: Historical Evolution of Equity Proprietary Trading - Equity proprietary trading has undergone two significant phases of transformation: the exploration of multi-strategy trading around 2010, and the recent shift towards high-dividend OCI strategies since 2022 [1]. - Major brokers like CITIC Securities and Huatai Securities were early adopters of multi-strategy and quantitative models to achieve stable and neutral returns [1]. - The adoption of high-dividend OCI strategies has become a consensus in the industry, with brokers increasingly diversifying their asset allocations [1]. Group 2: Current Trends and Strategies - As of Q1 2025, the total investment in other equity instruments by listed brokers reached 506.4 billion, with an estimated 200 to 250 billion attributed to high-dividend OCI strategies, representing over 50% of the industry's equity allocation [2]. - The acceleration in adopting high-dividend OCI strategies is driven by changes in market conditions and regulatory constraints on proprietary trading, making it a favorable option for brokers to enhance their balance sheets and yield [2]. Group 3: Future Outlook and Recommendations - The new mission for equity proprietary trading is to achieve high-quality balance sheet expansion, with "OCI+" expected to be a new starting point [3]. - If brokers allocate OCI strategies to 40% of their net capital, the potential incremental growth could reach 497.2 billion, providing stable income through coupon revenue [3]. - Investment recommendations suggest focusing on leading brokers with significant competitive advantages and considering smaller brokers with strong equity proprietary trading flexibility [3].