Core Viewpoint - Ping An Life's stake in three major banks' H-shares is a necessary choice for insurance capital seeking stable returns amid an "asset shortage," responding to policy calls and enhancing competitiveness through bancassurance collaboration [1][8]. Group 1: Investment Actions - Ping An Life disclosed that it has reached a 5% stake in Agricultural Bank of China H-shares, marking the third major bank it has invested in since 2025 [2]. - As of now, Ping An Life's holdings in Agricultural Bank, Postal Savings Bank, and China Merchants Bank H-shares have all surpassed 5% [2]. - Following the purchase of 133 million Industrial and Commercial Bank of China H-shares, Ping An Group's stake rose to 18.08% [2]. Group 2: Significance of Insurance Capital's Stake - The investment optimizes asset allocation as current market interest rates are declining, making fixed-income assets less capable of covering insurance liabilities [4]. - Insurance capital can smooth financial statement volatility by classifying bank stocks under FVOCI, avoiding direct impacts of stock price fluctuations on current profits [4]. - The move aligns with regulatory encouragement for insurance capital to support the real economy, with bank stocks being a core economic sector [4]. Group 3: Reasons for Choosing Specific Banks - The selected banks offer high dividend yields and low valuations, with Agricultural Bank's H-share yield exceeding 9% and a price-to-book ratio below 1 [6]. - These banks exhibit strong operational stability, with controllable non-performing loan ratios and growth in revenue and net profit as of 2024 [6]. - H-shares provide liquidity advantages, influenced by international capital flows and favorable valuations in the Hong Kong market [6]. Group 4: Impact on Capital Markets - The entry of insurance capital boosts market confidence, signaling positive trends and potentially driving bank stock valuation recovery [7]. - This investment encourages a long-term investment philosophy, shifting market focus from short-term speculation to value investing [7].