Core Insights - The low interest rate environment is reshaping investment strategies for insurance companies, prompting a shift towards equity investments, particularly high-dividend assets [1][5][6] - As of June 30, 2023, the total investment assets of five major A-share listed insurance companies reached 19.73 trillion yuan, reflecting a year-on-year growth of 7.52% [2][4] - The performance of investment returns varied among companies, with China Life achieving a total investment return rate of 3.29%, while China Pacific Insurance saw a decline of 0.4 percentage points to 2.3% [2][4] Investment Strategy Adjustments - Insurance companies are increasingly focusing on equity investments to enhance returns, with China Ping An's equity investment ratio rising to 10.5% from 7.6% year-on-year [4][6] - The emphasis on high-dividend stocks is becoming a key part of investment strategies, as these assets provide stable cash flow and align with the long-term investment needs of insurance funds [5][6][7] - Companies are also exploring diverse asset classes, including innovative high-quality assets like ABS and public REITs, to optimize their portfolios [8] Market Outlook - The outlook for the capital market is optimistic, with expectations of continued recovery in A-shares and a focus on sectors such as technology innovation and advanced manufacturing [4][5] - China Life is particularly optimistic about the Hong Kong stock market, which has shown strong recovery and offers valuable investment opportunities in new economy and high-dividend assets [9] Unique Investment Trends - A notable trend is the phenomenon of insurance companies investing in each other, with China Ping An acquiring stakes in China Pacific Insurance and China Life, guided by principles of reliability, growth potential, and sustainable dividends [7] - The establishment of private equity funds by insurance companies indicates a strategic move towards long-term investments in stable and well-governed companies [7]

Core Viewpoint - The Ministry of Finance has issued a notification to guide state-owned commercial insurance companies towards long-term stable investments, adjusting the long-cycle assessment indicators to enhance their role as market stabilizers and economic development boosters [1][4]. Group 1: Long-Cycle Assessment Adjustments - The net asset return rate assessment has been changed from a "three-year cycle + annual indicator" to an "annual indicator + three-year cycle + five-year cycle," with respective weights of 30%, 50%, and 20% [2][4]. - The capital preservation and appreciation rate assessment has been modified from an "annual indicator" to an "annual indicator + three-year cycle + five-year cycle," also with weights of 30%, 50%, and 20% [2][3]. Group 2: Impact on Investment Behavior - The establishment of a long-cycle assessment mechanism is expected to increase the tolerance of insurance funds for short-term market fluctuations, encouraging a higher allocation to A-shares and promoting stable long-term returns [1][3]. - The stable investment behavior of insurance funds will enhance the inherent stability of the capital market, reduce market volatility, and improve the investment ecosystem, thereby attracting various types of capital [1][5]. Group 3: Asset-Liability Management and Investment Strategy - State-owned commercial insurance companies are required to improve asset-liability management, optimize asset allocation, and reasonably determine equity investment ratios to balance investment returns and risks [3][6]. - The focus should be on long-term, value, and stable investments, enhancing internal long-term assessment mechanisms and investment portfolio management to identify quality investment targets with stable cash flow returns [3][6]. Group 4: Market Context and Future Outlook - As of the end of 2024, the balance of commercial insurance fund utilization is expected to reach approximately 33 trillion yuan, indicating significant room for increasing the proportion of A-share investments [4]. - The long-cycle assessment mechanism is viewed as a key measure to enhance the stability and positivity of various funds' stock investments, potentially leading to a substantial influx of long-term capital into the market [5][6].