Low position adding is optimistic about medium and long-term development of the "gold point" equity market of listed insurance companies
2022-09-15
Insurance funds are one of the largest institutional investors in the capital market. In the first half of this year, the total return on investment of the five A-share listed insurance companies decreased, concentrated between 3.1% and 5.5%, due to the low volatility of long-term interest rates and the volatility of the equity market. Looking forward to the future equity asset allocation, multi insurance companies said that the equity market in the second half of the year has strategic allocation value, and consumption, science and technology, new energy and other fields are expected to be favored by funds. The investment income in the first half of the year was under pressure and was disturbed by multiple factors. The capital market fluctuated, but the investment amount of insurance companies remained stable. Data shows that by the end of the first half of the year, the investment assets of PICC, China Life Insurance, Xinhua Insurance, China Pacific Insurance and Ping An Insurance had all stabilized at more than 1 trillion yuan, with a total scale of 13.56 trillion yuan, an increase of 6.57% over the beginning of the year. However, the yield of multi insurance enterprises is under pressure due to the low volatility of long-term interest rates and the volatility of the equity market. In the first half of the year, the total investment income of the five insurance enterprises totaled 252.435 billion yuan, down 15.7% year on year. From the perspective of return on investment, the total return on investment of the five major insurance companies from high to low is PICC, China Life Insurance, Xinhua Insurance, China Pacific Insurance and Ping An Insurance. As of the end of June, the corresponding annualized total return on investment of the above insurance companies was 5.5%, 4.21%, 4.2%, 3.9% and 3.1%, down 1.2 percentage points, 1.48 percentage points, 2.3 percentage points, 1.1 percentage points and 0.4 percentage points respectively year on year. The difference in the rate of return reflects the difference in investment strategies of different companies, especially in equity asset investment. The total return on investment of PICC in the first half of the year was 5.5%, especially in the volatile market environment. "We have made great efforts to improve our investment performance by optimizing the equity position structure, seizing structural opportunities, increasing bond band operations, expanding trading price differentials and other measures. Although the rate of return on investment in the first half of the year has also declined year-on-year, it has exceeded the industry average and reached the time schedule requirements of the budget target, laying a good foundation for achieving the annual investment income budget target." Li Zhuyong, vice president and secretary of PICC, said. According to the data of the CBRC, the annualized total return on investment of 24 trillion yuan of insurance funds in the entire insurance industry in the first half of the year was 3.66%. Li Wenzhong, deputy director of the Department of Insurance of Capital University of Economics and Trade, analyzed that the double overlap of the epidemic situation and the international situation has affected the economic development, which is reflected in the financial market, namely, the weakening of capital demand, the intensification of volatility, and the decline of investment returns. Compared with A-shares as a whole, the performance of listed insurance companies is relatively stable. The medium and long-term value of the equity market shows that multi insurance companies are adding positions at a low level, indicating the strategic allocation value of the equity market. Yu Rongquan, general manager of Taibao Assets, said that in the second half of the year, under a series of policies to stabilize growth, it is expected that the economy will remain relatively resilient, and may show a moderate recovery trend. Infrastructure investment will also gradually develop. Li Zhuyong said that with the implementation of a series of policies to stabilize the overall economy, the economy will continue to recover, with the growth rate maintained at a reasonable range, and is expected to achieve better results. "In the medium and long term, we are confident in the development of the equity market." Li Zhuyong pointed out that first, under the background of high-quality transformation and development,
Edit：Yi Bing Responsible editor：Wei Li Bin
Source：Economic Information Daily
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