Recently, the National Financial Regulatory Administration lowered multiple risk factors for insurance companies, leveraging their advantage as patient capital. The A-share financial sector saw a long-awaited rebound.
To refine solvency supervision standards and enhance insurers' role as long-term investors in serving the real economy, the regulator issued the *Notice on Adjusting Risk Factors for Insurers' Related Businesses*.
For equity investments, the notice specifies: - Risk factors for CSI 300 index constituents and CSI Dividend Low Volatility 100 index constituents held by insurers for over three years (based on a six-year weighted average holding period) were reduced from 0.3 to 0.27. - Risk factors for科创板-listed common stocks held for over two years (based on a four-year weighted average) were cut from 0.4 to 0.36.
The news spurred a late rally in the A-share insurance index on December 5, with China Pacific Insurance and Ping An Insurance both surging over 5%.
**Repeated Optimizations Signal Accelerated Inflows** This marks the latest in a series of adjustments. In September 2023, regulators trimmed risk factors for CSI 300 stocks (0.35→0.3) and科创板stocks (0.45→0.4). A May 2024 policy package further pledged a 10% reduction in equity risk factors.
CMB International estimates that fully reallocating the freed-up capital to CSI 300 stocks could channel over 150 billion yuan into equities.
**Insurance Holdings Hit Decade High** As of Q3 2025, insurers held 99.6 billion A-shares (excluding strategic stakes in China Life and Ping An Bank), worth 1.56 trillion yuan—a 10-quarter peak with 15%+ growth since Q2 2023. Zhongtai Securities calculates that the latest adjustments may release 32.6 billion in capital, potentially translating to 108.6 billion in incremental equity investments.
**46 Long-Term Holdings Unveiled** Data shows insurers held 600+ stocks in Q3 2025, including: - 30 CSI 300 constituents and 21 Dividend Low Volatility 100 stocks held 3+ years - 12科创板stocks held 2+ years
Top holdings by stake: CSG Holding, Minsheng Bank, SPD Bank; among科创板stocks: Guanggang Gases, Shanghai Sinyang, and Yunlu Advanced Materials.
Year-to-date, these 46 stocks averaged double-digit gains, led by Anji Tech (up 60%+), which has been held by insurers for 10 straight quarters. Its products now supply leading semiconductor clients.
**Growth Picks** Of these, 9 stocks are projected to sustain >20% net profit growth in 2025–2026, including 7科创板names. Standouts: - Eontec (forecast 200%+ 2025 profit growth) - Anji Tech (55% YTD earnings growth, 45% forecast) - Raytron Technology (45% YTD growth), expanding into satellite comms and GaN tech
Underperformers include Nantong Jingke and Yunnan Energy New Material.
*Disclaimer: This content is for informational purposes only and does not constitute investment advice.*
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