Core Viewpoint - The insurance industry is experiencing a strong demand for capital replenishment, leading to the emergence of new methods such as issuing zero-interest convertible bonds and increasing registered capital through capital reserves, which are expected to diversify capital replenishment paths and enhance capital strength [1][2]. Capital Replenishment Methods - China Ping An announced plans to issue approximately HKD 117.65 billion in zero-interest convertible bonds due in 2030, with proceeds aimed at supporting its financial core business development and new strategies in healthcare and elderly care [2][3]. - The initial conversion price for the bonds is set at HKD 55.02 per share, and the bonds will not accrue interest during their term [2]. - Other insurance companies, such as Jintai Insurance and Dinghe Property Insurance, are also utilizing capital reserves to increase registered capital, with Jintai planning to convert capital reserves into 8.09 billion shares, raising its registered capital from CNY 2.379 billion to CNY 3.188 billion [4]. Importance of Solvency - The capital structure of insurance companies is crucial for ensuring solvency, risk management, market reputation, regulatory compliance, and business development [2][5]. - As of June 9, 11 insurance companies have collectively issued bonds worth CNY 49.6 billion this year, indicating a strong ongoing demand for capital [5]. - The solvency adequacy ratio is closely linked to business operations and investment scope, prompting insurance companies to prioritize solvency construction [5][6]. Regulatory Support - Regulatory bodies have implemented measures to support insurance companies in enhancing their capital replenishment capabilities, including extending the transition period for solvency regulations and adjusting risk factors for stock investments [6][7]. - The industry is expected to continue utilizing various capital replenishment methods, including issuing capital replenishment bonds and increasing capital through profit transfers, with a focus on maintaining operational stability [7][8].