According to the data disclosed by the China Banking and Insurance Regulatory Commission on June 27, as of the end of May this year, the balance of insurance capital allocation stocks and securities investment funds was 2.98 trillion yuan, accounting for 12.4%, which rebounded from 11.9% at the end of April, while the top 4 The allocation ratio of monthly insurance funds to these two equity assets continued to decline.
A number of interviewees from insurance capital institutions believe that the increase in the allocation ratio of insurance capital to stocks and securities investment funds is related to two factors: First, the equity market has continued to improve since May, and the market value of equity assets held by insurance capital has increased; Second, since late April, many insurance capital institutions have begun to increase their positions against the trend, and the allocation ratio has also increased.
Many leading insurance institutions are optimistic about the equity market in the second half of the year. In the medium and long term, the resilience of China's economy will remain unchanged, and the current equity assets with extremely low valuations are long-term attractive.
Insurance funds have been adjusted or increased at the right time
From the beginning of the year to the end of April, the Shanghai Stock Exchange Index continued to fall, and the equity investment departments of insurance-funded institutions felt the pressure. Many relevant persons in charge of insurance-funded institutions directly called "the pressure is huge".Data show that as of the end of April this year, the allocation ratio of insurance capital to stocks and securities investment funds has hit a new low in the past three years, and many insurance companies have negative comprehensive investment returns in the first quarter.
However, with the gradual recovery of the equity market since May, the increase in the market value of insurance capital holdings and the active increase in positions, the allocation ratio of insurance capital to stocks and securities investment funds has increased.As of the end of May, the balance of insurance capital utilization reached 24.04 trillion yuan, of which stocks and securities investment funds accounted for 12.4%. Although it was still lower than the allocation level at the end of last year (12.7%), it was 0.5% higher than the allocation level at the end of April. percent.
In fact, starting in late April, insurance giants such as Ping An Asset Management and China Life Assets have expressed their willingness to increase their equity asset allocation, and some insurance companies have even increased their positions at market lows.
Zhang Wei, general manager of Dafa Assets and Equity Investment Department, told the "Securities Daily" reporter that he is firmly optimistic about the long-term investment value of my country's capital market.In late April, when market valuations were at the bottom and confidence was the most sluggish, everyone’s assets increased against the market on a large scale, exerting their own strengths to stabilize the market, and at the same time achieving good performance returns.
The reporter also learned from a medium-sized insurance company that when the valuation of A shares was at a low point, the company's equity department appropriately increased the allocation ratio of equity assets.
A relevant person in charge of a large insurance capital institution told the "Securities Daily" reporter that since the beginning of this year, after comprehensively considering factors such as macroeconomic trends, equity market valuation levels, solvency requirements, debt income requirements and other factors, the allocation of stocks has been adjusted. warehouse or increase.
Focus on opportunities in new energy and other fields
Regarding the trend of the equity market in the second half of the year, many insurance capital institutions believe that it is "more optimistic".
Zhang Wei said, "In general, we are relatively optimistic about the market performance. From the beginning of 2022 to the end of April, the stock market has fallen significantly, the premium of stocks relative to bonds has dropped to a historically low level, and many internal and external risk factors have been released. The previous market low is likely to be the bottom.”
The relevant person in charge of China Life Security Fund told reporters that from a domestic perspective, with the recent advancement of various policies, the economy has shown a trend of recovery, and auto consumption and infrastructure investment have become the two major drivers for stable growth.While the economy is recovering, the relatively loose liquidity environment has pushed up the risk appetite of funds and supported the strength of the stock market.From an overseas perspective, as the Fed's expectation of accelerating interest rate hikes is gradually rising, the market's worries about the U.S. economy falling into recession are also rising, and it is necessary to be alert to the negative impact of the increase in global policy interest rates.
Zhu Xiaoming, assistant general manager of Taiping Assets Research Department, said that changes in the external situation have brought great disturbances, and IFRS9 is about to be officially implemented, which puts forward higher requirements for the return volatility and drawdown control of equity investment of insurance funds.From the perspective of external factors, it is necessary to be alert to the risk of continued "overshoot" or even out of control of U.S. inflation.From the perspective of internal driving factors, the determinants of the trend of China's stock market lie in policies and economic cycles. In most cases, external disturbance factors can only cause short-term effects and do not change the operation logic of the stock market.From a medium-term perspective, the risk of further downside in the stock market is basically controllable, and an optimistic and positive attitude should be maintained on the basis of careful tracking, research and judgment.From a long-term perspective, the impact of the epidemic will gradually weaken, and the resilience of the Chinese economy will not fundamentally change. Equity assets with currently extremely low valuations are attractive in the long run.
Recently, at the CPIC Shareholders' Meeting, Fu Fan, President of CPIC, said that the company will continue to adhere to the dumbbell-type strategic asset allocation strategy in the future, and appropriately increase the proportion of equity asset allocation and real estate asset allocation to enhance long-term investment returns.
When it comes to investment opportunities in subdivided industries, Zhang Wei believes that many industries and individual stocks have fallen out of opportunities, and the risk-reward ratio of new energy and other fields has increased significantly.For investment in growth stocks, we must focus on "penetration rate, market share, localization rate" and grasp the real growth opportunities of the company.In terms of value stock investment, it is recommended to focus on structural opportunities brought about by industry supply contraction.
The relevant person in charge of the above-mentioned large insurance capital institutions also told reporters that in the future, they need to focus on investment opportunities in the fields of domestic substitution, technology, "dual carbon", and big health.
Our reporter Su Xianggao
