source: brokerage china

as representatives of medium- and long-term funds, many insurance giants said that it is of great significance to improve the supporting policies and systems for medium- and long-term funds to enter the market, guide insurance funds to optimize the long-term assessment mechanism, and help insurance funds carry out "long-term investment" in the new era. to play a better role in key focus areas such as quality productivity. insurance capital also made suggestions on further cultivating and strengthening insurance capital as patient capital.

optimizing long-term assessment and differentiated investment in enterprise annuities attract attention

the "guiding opinions" propose three core measures: "build and cultivate a capital market ecosystem that encourages long-term investment", "vigorously develop equity public funds and support the steady development of private securities investment funds", and "strive to improve supporting policies and systems for the entry of various medium and long-term funds into the market".

the relevant person in charge of china life assets, a subsidiary of china life group, believes that "strive to improve the supporting policies and systems for the entry of various types of medium and long-term funds into the market" is of great significance to insurance medium- and long-term funds.

first of all, optimizing the long-term assessment mechanism will help alleviate the problem of mismatch between the long-term investment goals of medium and long-term funds with insurance capital as the core and the short-term assessment cycle. limited by accounting, performance appraisal, solvency and other requirements, insurance funds still face certain practical constraints in equity investment. the stock investment ratio of most insurance companies is still far from the policy upper limit.

secondly, the "guiding opinions" opened up the exploration of differentiated investment in enterprise annuities. in the current enterprise annuity management process, most companies have formulated a unified investment strategy for investment operations, but it is difficult to take into account groups with different risk preferences during execution. the final result generally tends to be low risk preference and low volatility tolerance. when it comes to asset allocation, this is reflected in the relatively low proportion of equity assets. if the personal investment options of enterprise annuities are opened up, it will be helpful to fully reflect the risk preferences of fund owners in the investment process, realize personalized asset allocation oriented by customer needs, and help employees make full use of the time dividend brought by long-term investment. , improve the allocation of risk assets and achieve stable returns across cycles.

duan guosheng, executive vice president, chief investment officer of taikang insurance group and ceo of taikang assets, noticed many contents in the "guiding opinions", such as: establishing and improving commercial insurance funds, various types of pensions and other medium and long-term funds with a long cycle of more than three years assessment mechanism to promote the establishment of long-term performance orientation; improve the national social security fund and basic pension insurance fund investment policy system, support qualified employers to liberalize individual investment options for enterprise annuities, and encourage enterprise annuity fund managers to explore and carry out differentiated investments, etc.

"as an insurance asset management institution, we very much agree with the "guiding opinions". these policy directions effectively address the problems that insurance, annuities, social security and other funds often face in the actual investment process. the "guiding opinions" address these issues. "we firmly support and respond to the policies of the party central committee and the china securities regulatory commission, and look forward to the relevant policy details being put in place as soon as possible to further realize the attributes of insurance funds as patient capital and make efforts to boost confidence in the capital market." greater contribution.”

there is still room for improvement in the proportion of institutional investors’ holdings

the relevant person in charge of china life asset stated that the "guiding opinions" clearly mentioned in the main goals "to promote a significant increase in the scale and proportion of medium and long-term capital investment, a more reasonable investor structure in the capital market, and comprehensive strengthening of the long-term nature of investment behavior and the inherent stability of the market." ".

the person said that according to statistics from the china securities regulatory commission, as of the end of august 2024, institutional investors such as equity public funds, insurance funds, and various pension funds held a total of a-shares with a circulating market value of 14.5 trillion yuan, an increase of more than 100% from the beginning of 2019. , accounting for 17% of the circulating market value of a shares to 22.2%. as of the end of june 2024, the scale of insurance funds investing in stocks was 2.08 trillion yuan, accounting for 3.15% of the circulating market value of a-shares; during the same period, the total scale of insurance funds investing in stocks and securities investment funds reached 3.78 trillion yuan, an increase from the level at the beginning of 2019 96.8%.

"medium and long-term capital investment operations are highly specialized and stable, which is of great significance for overcoming short-term market fluctuations and playing the role of 'stabilizer' and 'ballast stone' in the capital market. at present, institutional investors' positions in the stock market there is still a lot of room for improvement,” said the above-mentioned person from china life asset management.

the above-mentioned person in charge of china life assets made suggestions on further cultivating and expanding insurance funds as patient capital:

on the one hand, it is recommended to further enrich the long-term investment model of commercial insurance funds. for example, insurance capital can be supported to participate in the fixed increase of listed companies, and qualified insurance companies can be allowed to set up private equity funds to participate in stock market investments and increase the scale of private equity funds. the establishment of private equity funds for long-term stock investment will significantly alleviate the disturbance of short-term stock price fluctuations to insurance companies' current profits and net assets, and help insurance funds increase investment in strategic emerging industries, advanced manufacturing, new infrastructure and other fields. , serving the development of new quality productive forces.

on the other hand, it is recommended to further clear up the institutional obstacles that affect the long-term investment of insurance funds. the first is to optimize and improve solvency-related investment risk factors. the current minimum capital calculation coefficient for equity investment in the second phase of c-ross is still relatively high. if the equity investment areas and holding periods can be subdivided, and the investment risk factors can be appropriately reduced for long-term held targets, the allocation of long-term investment of insurance funds will be further improved. will. the second is to optimize and improve the accounting standards for insurance long-term investment equity assets. under the new financial instrument standards, fair value measurement has increased the profit fluctuations of insurance companies. if the accounting standards for long-term investments of insurance companies can be optimized, insurance companies will be further encouraged to hold high-quality equity assets in the long term. the third is to propose the lifting of restrictions on stock investment in insurance companies.

“interchange convenience” brings multiple positive impacts

previously, on september 24, "one bank, one bureau, one meeting" was announced at a press conference of the state council information office to promote insurance and other medium and long-term funds to support the steady development of the capital market. among them, central bank governor pan gongsheng said that the creation of new monetary policy tools will support the stable development of the stock market, which has attracted market attention. one of them is to create swap facilities for securities, funds, and insurance companies to support qualified securities, funds, and insurance companies to obtain liquidity from the central bank through asset pledge.

regarding the central bank's innovative monetary policy of "swapping facilities," su gang, chief investment officer of china pacific insurance, said that this demonstrates the country's firm determination to maintain financial market stability and promote the healthy development of the capital market. he believes that the positive impact of this policy on the capital market lies in:

the first is to broaden the sources of institutional funds. securities, funds, and insurance companies can obtain liquidity from the central bank through asset pledges, which will greatly increase the ability of these institutions to obtain funds.

the second is to improve market liquidity. the incremental liquidity injection obtained through "swap facilities" will directly increase the overall liquidity level of the capital market and contribute to the activeness of market transactions and the performance of price discovery functions.

the third is to boost market confidence. the central bank uses this policy tool to release positive signals to the market, demonstrating its determination and ability to maintain market stability. this will help enhance investor confidence and promote the stable development of the capital market.

su gang said that china pacific insurance will conduct in-depth research on the application scenarios of the "swap facility" business in conjunction with the company's investment strategy, and give full play to the role of long-term funds and patient capital in the capital market.

the person in charge of picc asset management said that the new monetary policy tools created this time, such as securities, funds, insurance company swap facilities, etc., provide more investment channels and opportunities for long-term capital such as insurance funds. picc asset management will participate more actively in market transactions, further strengthen confidence, actively respond, better help the return of market value, and give full play to the role of long-term funds as a "stabilizer" and "booster" in the capital market.

positive policy signals are of great significance and will strengthen "long-term money and long-term investment"

the people's insurance company of china said that in the context of the current complex and volatile global economic situation, my country has recently responded to market concerns in a timely manner through a series of precise and effective policy measures, hitting the key to the steady development of the capital market and significantly enhancing investor confidence. it also provides solid support for the healthy development of long-term capital such as insurance funds.

the relevant person in charge of picc assets said that picc actively fulfills its responsibilities as a financial central enterprise, continues to increase investment at the bottom of the stock market, actively leverages the advantages of large scale, long term, and stable sources of insurance funds, and increases investment in the real economy, especially strategic ones. investment intensity in emerging industries, advanced manufacturing, new infrastructure and other fields. the company anchors high-quality development goals, closely follows the direction of national policy encouragement, focuses on serving the "five major articles", optimizes the asset allocation of insurance funds, provides long-term and stable financial support for the real economy, and promotes the transformation and upgrading of the economic structure.

ping an of china stated that the group will solidly write the "five major articles" of finance, be oriented towards high-quality development, actively respond to national policies, and further enhance the ability and level of insurance services for the real economy. insurance funds have the characteristics of long duration and strong stability, and can better connect with emerging industries and fields related to high-quality development. ping an is firmly optimistic about the future of china's economy. ping an's insurance funds will adhere to the investment principles of "strategic determination and transcending cycles; tactical flexibility and preparedness for rainy days; balanced allocation and risk diversification", and will continue to improve the growth sectors related to new productivity promoted by national policies. allocate weights to reflect the due responsibilities of "patient capital".

taiping life stated that the company has always aimed to optimize the asset and liability structure and adhered to long-term investment and value investment. since 2020, the company has increased the allocation of long-term bonds, and the asset duration has been significantly lengthened. in the future, it will continue to strengthen "long-term investment." " concept and actively leverage the long-term advantages of insurance funds. in terms of investment direction, we will increase investments in line with national industrial policies or in synergistic main business areas, and lay out strategic emerging industries, venture capital, and the upstream and downstream value chain areas of medical and health care with synergistic effects; in terms of investment targets, we will have a clear underlying foundation through investment. assets, stable period income, and assets with clear exit channels should give full play to the advantages of patient capital of insurance funds to boost long-term returns while supporting high-quality economic development; in terms of investment methods, explore models and routes for long-term funds to serve the new economy and new industries. increase cooperation between central enterprises and local governments, including the establishment of private securities investment funds, regional development funds, etc.

taiping asset said that recently, a number of favorable policies have been announced, which not only responds to market concerns, but also reflects a strong signal from decision-makers to stabilize the economy, stabilize the market, and stabilize expectations, which is of great significance:

first, the comprehensive use of fiscal, monetary, capital market and other policy measures to improve market expectations and boost market performance, such as the creation of swap facility monetary policy tools and other innovations, will help enhance investor confidence and enhance market vitality.

second, the policy focus is firmly focused on real estate, corporate profits, consumption promotion, employment protection and other areas of the real economy and the national economy and people's livelihood, emphasizing stimulating the enthusiasm, initiative and creativity of the whole society, and promoting high-quality development in an all-round way through economic and financial means.

the third is to further optimize the institutional environment that guides medium and long-term funds to enter the market, supervise and guide insurance funds to optimize the long-term assessment mechanism, and promote insurance institutions to optimize asset-liability matching, which will help insurance funds carry out "long-term investment" and play a key role in new quality productivity and other key areas. key areas should better play the "ballast" role of long-term capital and patient capital.

taiping asset stated that it will further implement the relevant spirit, adhere to long-term investment, value investment, and responsible investment, continue to optimize the investment management system and mechanism in line with the characteristics of insurance funds, focus on the direction of high-quality economic development, continuously optimize the investment layout, and support the long-term health and stability of the capital market. development and fully serve the implementation of national strategies.

editor: li dan

proofreading: wang jincheng

copyright statement

all original content on each platform of securities times may not be reproduced by any unit or individual without written authorization. our company reserves the right to pursue legal liability of relevant actors.

for reprinting and cooperation, please contact the assistant of securities times, wechat id: securitiestimes

END