On July 20th, the A-share insurance sector experienced a significant collective surge.
Leading the gains, Ping An Insurance (Group) Company Of China, Ltd. (SHSE: 601318) saw its shares rise by 4.99%. The five major listed insurers all closed in positive territory, becoming a core market haven and profitable sector for the day, driven by low valuations, high dividends, and expectations of long-term fund support.
In contrast, the technology sector saw a sharp reversal after an initial rally. Semiconductors, memory, and advanced packaging stocks initially surged before quickly turning downward, with losses continuing to widen. This starkly divided market sentiment created a tale of two extremes.
Following the market close, the five major A-share insurers, including Ping An Insurance (Group) Company Of China, Ltd. and others, successively issued announcements, collectively expressing firm support for the development of the capital markets. This represents a rare instance of concentrated communication from the insurance industry in recent years.
Ping An Insurance (Group) Company Of China, Ltd. stated it would further leverage its advantages as a large-scale, long-term investor, continuously increasing investment in strategic emerging industries, advanced manufacturing, new infrastructure, and value-oriented assets.
Overall, the core themes of the collective statements were firm optimism, increased allocation, and patient capital, sending a clear signal of long-term bullishness on A-shares, greater commitment to equity investments, and the practice of responsible investing.
Basis for the Stance
This concentrated show of support for the capital markets is backed by a solid fundamental performance and represents a return of responsibility following a recovery in industry profitability.
In the first half of 2026, listed insurers delivered exceptionally strong profit figures with remarkable growth rates. The core driver of this earnings surge was the recovery in the equity markets. Under new accounting standards, a significant portion of equity assets are classified at fair value through profit and loss, meaning market value gains are reflected in current profits in real-time, amplifying the elasticity effect from capital markets.
In short, the insurers' substantial first-half earnings were largely attributable to favorable market conditions. Having profited from market tailwinds, stepping up during periods of market pressure and weak confidence is a market responsibility insurers are expected to bear.
From both a policy and industry fundamental perspective, these statements are a natural and mutually adaptive choice. In recent years, regulators have continuously issued supportive policies, lowering risk factors for insurance capital's stock investments and encouraging greater allocation to equity markets. Simultaneously, with domestic interest rates trending downward and bond yields falling below 2.5%, returns on fixed-income assets remain under pressure. The over 40 trillion yuan in insurance fund assets under management urgently require high-quality, suitable assets, making the equity market a core avenue for optimizing asset allocation and enhancing investment returns.
In other words, making such statements is both "the right thing to do" and "a necessity."
Alignment Between Words and Deeds
However, making statements is one thing, while taking action is another. On the very same day, a detail added a layer of nuance to the market's scrutiny.
On the evening of July 20th, one of the major insurers disclosed a series of announcements revealing that eight of its asset management plans collectively sold approximately 1.1092 million shares of Gigadevice Semiconductor Inc. (SHSE: 603986) on July 8th. The减持 price range was between 611.46 yuan and 624.61 yuan per share, resulting in total proceeds of about 685 million yuan.
As a bellwether stock in the A-share memory chip sector, Gigadevice Semiconductor Inc. has seen a very sharp upward trajectory in recent years. The stock rose nearly 14-fold over two and a half years from February 2024 to its historical intraday high in July 2026. The减持 on July 8th occurred when the stock's closing price was 603.17 yuan, placing the transaction within a high price range. From a timing perspective, this was indeed a successful operation to lock in gains near a peak.
The减持 itself is not inherently objectionable. As a market-oriented institutional investor, insurance capital adjusting its holdings based on market judgment is standard commercial practice. The issue lies in the timing: a high-price减持 on July 8th, followed by a high-profile declaration of "firm support" and "increased allocation" on July 20th during a market dip. The opposing actions of selling and advocating create a strong sense of disjointed rhythm.
Objectively, the 685 million yuan减持规模 is far smaller than the single-day net purchases of tens of billions also announced. However, in the current sensitive environment where the tech sector faces sustained pressure, such profit-taking actions inevitably raise external questions about the long-term investment philosophy of insurance funds.
It is undeniable that insurance capital remains a core stabilizer for the A-share market, and the macro-supporting value of its long-term funds is irreplaceable. By the end of the first quarter of 2026, the total balance of insurance funds allocated to stocks and securities investment funds had reached 5.9 trillion yuan. With such a massive volume of "long-term money," if it can genuinely achieve counter-cyclical allocation and long-term holding, its stabilizing effect on the capital market would be substantial.
But capital markets are never short on statements; what is scarce is the steadfast alignment of words and deeds. What the market truly anticipates is for insurance capital to abandon short-term trading mentalities, fully embody the "patient capital"定位, and use concrete actions to solidify the foundations of value investing in the market.
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