Core Viewpoint - The recent policy measures introduced by the National Financial Regulatory Administration are expected to significantly enhance the investment enthusiasm of insurance companies, potentially attracting more insurance funds into the market and stabilizing the capital market [1][3]. Group 1: Expansion of Long-term Investment Pilot - The scope of the long-term investment pilot for insurance funds will be further expanded, with an additional 60 billion yuan planned for approval to inject more capital into the market [2]. - As of now, the total approved and proposed scale of the long-term investment pilot has reached 222 billion yuan, with participation expanding from initial companies to include several major insurers [2][7]. - The first batch of 50 billion yuan from the pilot has been fully invested, and the second batch is currently being expedited [2]. Group 2: Adjustment of Investment Risk Factors - The regulatory authority will reduce the risk factor for stock investments by 10%, encouraging insurance companies to increase their market participation [4]. - Lowering the risk factor improves capital efficiency for insurance companies, allowing for a higher proportion of stock investments [4]. - Previous adjustments to risk factors have already been made, with significant reductions for investments in major indices and the Sci-Tech Innovation Board [4]. Group 3: Increase in Equity Investment Proportion - The proportion of equity investments by insurance funds is expected to rise, as recent policies have optimized the investment environment [5][6]. - As of the end of 2024, the total balance of insurance company funds is projected to reach 33.26 trillion yuan, with an increase in stock allocation compared to the previous year [6]. - There remains considerable room for growth in the equity investment ratio of insurance funds, supported by favorable policies [6].

Core Viewpoint - The article discusses the ongoing expansion of insurance capital's long-term investment pilot program in China, highlighting the approval of significant funding amounts for various insurance companies to invest in the stock market, aiming to enhance market liquidity and stability [2][3][9]. Group 1: Investment Scale and Approval - The pilot program for long-term insurance capital investment has seen its scale exceed 200 billion yuan, with recent approvals adding up to 600 billion yuan for market injection [3][4][6]. - The China Life Insurance Company and New China Life Insurance have established a private equity fund with an initial investment of 250 billion yuan each, totaling 500 billion yuan for the Honghu Fund [5][10]. - The China Insurance Regulatory Commission has approved additional pilot scales for various insurance companies, including a 100 billion yuan pilot for PICC Life Insurance [7][6]. Group 2: Investment Strategy and Structure - The long-term investment pilot primarily involves setting up private equity funds that focus on secondary market stocks, with a strategy of long-term holding [9][10]. - The new accounting standards allow insurance companies to smooth out profit fluctuations from equity investments, which is a significant factor driving participation in the pilot program [10]. - The Honghu Fund has already invested in major listed companies, achieving returns that exceed benchmarks, indicating successful initial performance [10][11]. Group 3: Regulatory Support and Market Conditions - The regulatory framework is evolving to support increased participation of insurance capital in the stock market, including adjustments to solvency regulations and investment limits [9][10]. - The current macroeconomic environment, characterized by low interest rates and increased asset volatility, places additional pressure on insurance capital to optimize asset allocation and enhance investment returns [12]. - Industry experts emphasize the importance of maintaining a long-term investment perspective and actively seeking sustainable investment opportunities in the equity market [12].