Core Viewpoint - Insurance capital continues to show enthusiasm for equity market allocation, with a total of 30 instances of capital raising this year, including 6 in A-shares and 25 in H-shares, primarily in banking and insurance sectors, as well as utilities, energy, biomedicine, and technology [1] Group 1: Investment Strategy - China Pacific Insurance adheres to a "value investment, long-term investment, stable investment, and responsible investment" philosophy, implementing a refined "barbell" asset allocation strategy that increases long-term interest rate bonds while also adding equity and alternative investments to enhance long-term returns [2][3] - The company has actively increased its equity holdings during market downturns, such as the low market phase before September 24, 2024, and the significant drop on April 7 this year, thereby acting as a stabilizer in the stock market [2] - The establishment of the Taibao Zhanxin M&A Fund with a target size of 30 billion yuan and the Taibao Zhiyuan Private Securities Investment Fund with a target size of 20 billion yuan supports the company's long-term investment strategy [2] Group 2: Asset Allocation Logic - The company has developed a strategic asset allocation methodology centered on solvency and risk appetite, balancing short-term profit fluctuations with long-term net value growth [3] - In equity investments, the focus is on a dividend value strategy, optimizing the structure of equity investment portfolios while exploring innovative high-quality assets in fixed income, such as ABS and public REITs [3][6] - The company is expanding its investment varieties and channels, including gold investments and swap facilities, to enhance the efficiency and quality of insurance capital utilization [3] Group 3: Market Outlook and Challenges - The company views the Chinese equity market positively, citing better intrinsic returns from equity assets compared to fixed income, with the dividend yield of the CSI 300 index at 2.8% and the Hang Seng index at 3.2% [6] - The ongoing low interest rate environment presents challenges, with a predicted downward trend in mid- to long-term interest rates, leading to difficulties in obtaining stable returns due to a shortage of quality assets [11][12] - The company recognizes multiple strategic opportunities, including participation in emerging industries like new energy and AI, and aims to leverage its large-scale, long-term capital to optimize asset allocation [12]

Core Viewpoint - Insurance capital continues to show enthusiasm for equity market allocation, with a total of 30 instances of capital raising this year, including 6 in A-shares and 25 in H-shares, primarily in banking and insurance sectors, as well as utilities, energy, biomedicine, and technology [1][4] Group 1: Investment Strategy - China Pacific Insurance adheres to a "value investment, long-term investment, prudent investment, and responsible investment" philosophy, implementing a refined "barbell" asset allocation strategy that balances long-term government bonds and equity investments [4][5] - The company has increased its allocation to long-term government bonds, leading the industry in this regard, while also expanding its equity and alternative investments to enhance long-term returns [4][5] - The establishment of the Taibao Zhanxin M&A Fund with a target size of 30 billion yuan and the Taibao Zhiyuan Private Securities Investment Fund with a target size of 20 billion yuan supports the company's long-term investment strategy [4][5] Group 2: Market Analysis - The company views the current equity market positively, noting that equity assets have the best allocation value among major asset classes, with a dividend yield of 2.8% for the CSI 300 Index and 3.2% for the Hang Seng Index [7][8] - The company emphasizes a cross-cycle asset allocation system and a strategy-driven management system, focusing on sustainable dividend income and long-term value growth [8][9] Group 3: Alternative Investments - In the current low-interest-rate environment, alternative assets are seen as a key direction for insurance capital, providing risk diversification in asset allocation [12] - The company is actively involved in equity investments, particularly in the context of policy-driven opportunities in the M&A market, and is focusing on real estate investments through funds targeting logistics, data centers, and renewable energy infrastructure [12][13] Group 4: Challenges and Opportunities - The insurance capital allocation environment is complex due to global political and economic changes, domestic real estate market adjustments, and investment slowdown [14][15] - Despite challenges, the company identifies strategic opportunities in emerging industries such as renewable energy and AI, leveraging its long-term capital advantages for investment [15]