Ruizhong Life Insurance raised its stake in China Duty Free Group's H shares. In the past half month, 5 H-share companies have been raised by insurance funds.
2024-08-13
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Ruizhong Life Insurance once again raised its stake in H shares.
Equity disclosure information from the Hong Kong Stock Exchange shows that Ruizhong Life Insurance Company Limited bought 151,900 H shares of China Tourism Group Duty Free Co., Ltd. (China Duty Free, 601888.SH; 01880.HK) on August 7, increasing the number of shares held to 5.82 million shares. The shareholding ratio increased from 4.87% to 5.00%, reaching the 5% shareholding line.
According to the disclosure, Ruizhong Life Insurance increased its holdings of China Duty Free Group's H shares at an average price of HK$54.5566 per share, costing approximately HK$8.2871 million. Recently, the share price of China Duty Free Group's H shares has been at a relatively historical low. The share price has been falling from a high of more than HK$270 in early 2023. In July this year, it once fell to HK$47.7 and then fluctuated slightly. Since the beginning of this year, China Duty Free Group's H shares have fallen by more than 30%.
Not long ago, Ruizhong Life Insurance bought 5.26 million H shares of China Longyuan Power Group Co., Ltd. (Longyuan Power, 001289.SZ; 00916.HK) on July 22, increasing its shareholding ratio from 4.84% to 5%, reaching the shareholding line.
Ruizhong Life Insurance said at the time that the holding of Longyuan Power was for the company to buy the listed company's H shares through the secondary market of Hong Kong Stock Connect. The funds came from its own funds and the insurance liability reserves of the universal account and the insurance liability reserves of the dividend account. The holding of Longyuan Power's H shares will be included in the equity investment management.
Unlike before, the China Duty Free Group that Ruizhong Life Insurance is holding this time is not in the fields of new energy, environmental protection services, infrastructure, etc. that insurance funds have favored in the past, but a company in the commercial service sector. According to the introduction on the official website of China Duty Free Group, the company was formerly China International Travel Service Co., Ltd., a listed company controlled by China Tourism Group Co., Ltd. It is a large joint-stock company focusing on tourism retail business, with businesses covering duty-free, taxable, tourism retail complexes, etc.
Insurance companies have been keen on raising their stakes in H shares recently. In addition to Ruizhong Life, China Taiping Life Insurance bought shares of Huadian Power International Co., Ltd. (Huadian Power International, 01071.HK) and Huaneng Power International Co., Ltd. (Huaneng Power International, 00902.HK) through the Hong Kong Stock Connect on July 30. China Taiping Life Insurance and its affiliates and persons acting in concert who participated in the raising of stakes held 5% of the shares of the two companies.
On July 31, Great Wall Life Insurance also increased its holdings of Green Power Environmental Protection Group Co., Ltd. (Green Power, 601330.SH; Green Power Environmental Protection, 1330.HK) H shares to 70,150,000 shares through continuous bidding, increasing its shareholding ratio to 5.0343%.
At that time, Great Wall Life Insurance stated that environmental protection and public utilities are one of the key investment sectors of Great Wall Life Insurance. Great Wall Life Insurance believes that Green Power is one of the leading domestic waste environmental protection companies. Its main business is the investment, construction, operation, maintenance and technical consulting business of waste incineration power plants. Its main products include environmental protection services and power production. The listed company has stable business and steady performance, which is in line with the insurance company's long-term investment philosophy and is suitable for long-term holding of insurance funds.
Since 2024, the number of insurance funds raising stakes has reached double digits, which is higher than in the past. Among them, Great Wall Life Insurance has accounted for an absolute proportion of the number of times it has raised stakes, involving industries including electricity, environmental protection, banking, transportation, public utilities, power equipment, etc. Huachuang Securities Research Report believes that from 2023 to date, from the perspective of the targets of the stakes, the risk factors of long-term stock investment have tightened, the high ROE characteristics of the stakes have weakened, and the dividend style has become more prominent. "Interest rate spread loss" and solvency may constitute the motivation for Great Wall Life Insurance to frequently raise stakes. The trend of industry-wide stakes is expected to continue, but the pace may be slower.
Hu Zhiting, reporter of The Paper
(This article is from The Paper. For more original information, please download the "The Paper" APP)
