Great Wall Life Insurance, known for its aggressive stock acquisitions in the capital market, recently found itself under regulatory scrutiny. On December 9, the Hebei Securities Regulatory Bureau issued a warning letter to the insurer for failing to halt trading after its stake in Xintian Green Energy (0956.HK) crossed the 5% disclosure threshold. While the penalty was relatively light, it served as a compliance wake-up call for the insurer, which has been actively increasing holdings in listed companies.
In recent years, insurance capital has been increasingly active in the A-share market, with 2025 seeing a decade-high number of disclosure-triggering acquisitions. Great Wall Life has emerged as a key player, earning the nickname "Stock Shopping King" for its 12 acquisitions in A-share and H-share companies since June 2023, spanning sectors like renewable energy and utilities.
This aggressive strategy has paid off in investment performance: Great Wall Life's investment income doubled in 2024 and grew 24.65% year-on-year in the first three quarters of 2025, ranking among the top 10 insurers in investment returns. The company reported 2024 revenue of RMB 26.585 billion, up 37% year-on-year, and net profit of RMB 517 million—a record high. However, growth slowed in 2025, with both revenue and profit declining in the first three quarters.
**Regulatory Violation in Xintian Green Energy Acquisition** On September 23, Great Wall Life purchased an additional 1 million shares of Xintian Green Energy, raising its stake to 5.0027%. While it disclosed the transaction the next day, it continued trading during the mandatory three-day suspension period, violating securities laws. Experts note that such violations, if repeated, could lead to heavier penalties, including forced divestment or investment restrictions.
The insurer attributed the breach to operational gaps in real-time monitoring and trade execution, pledging to strengthen internal controls.
**Two-Year Acquisition Spree** From June 2023 to Q3 2025, Great Wall Life acquired stakes in 12 companies, including Zhejiang Communications Technology (002061.SZ), Henan Zhongyuan Expressway (600020.SH), and Green Power Environmental (1330.HK). Some holdings, like Zhongyuan Expressway and Wuxi Rural Commercial Bank (600908.SH), delivered over 30% returns. Others, such as Shanghai Datun Energy (600508.SH), saw modest gains.
By Q3 2025, the insurer held shares in 23 A-share firms worth over RMB 7.5 billion, with six exceeding 5% ownership. Its equity investments rose from 3.93% of assets in 2023 to 7.35% in Q3 2025.
**Premium Growth Stalls** After a decade of consecutive growth, Great Wall Life's new premium income dropped 43% year-on-year in the first nine months of 2025, dragging total premiums down 5.92%. Renewed premiums grew 9.5%, helping stabilize the business.
The insurer's solvency ratios—102.21% (core) and 153.84% (comprehensive) in Q3—remain above regulatory minimums but have trended downward. Backed by state-owned parent Financial Street Group, it raised RMB 1.093 billion in 2023 and RMB 620 million in 2024 to bolster capital.
While its investment prowess has shone, Great Wall Life faces challenges balancing growth, compliance, and capital adequacy amid market volatility.
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