Insurance funds continued to accumulate bank stocks in Q3 2025, as revealed by the quarterly reports of A-share listed banks. Despite a sector-wide correction exceeding 10%, insurers expanded their allocations with differentiated strategies.
Wind data highlights Ping An Life’s aggressive buying, raising its stake in Agricultural Bank of China (ABC) A-shares to 4.913 billion shares, making it the fifth-largest shareholder. It also increased holdings in Postal Savings Bank of China (PSBC) A-shares to 2.382 billion shares. Meanwhile, China Life adjusted its bank stock portfolio, reducing PSBC A-shares by over 57 million shares but entering the top ten shareholders of Industrial and Commercial Bank of China (ICBC) and Bank of Nanjing Co., Ltd., balancing exposure to state-owned banks and regional lenders.
Industry-wide, insurance funds appeared among the top ten shareholders of 23 A-share listed banks, with holdings (excluding Ping An Bank) valued at 316.519 billion yuan by quarter-end.
Tian Lihui, Dean of the Institute of Financial Development at Nankai University, noted that investing in banks allows insurers to enhance synergies through bancassurance partnerships while balancing returns and risks. Bank stocks’ stable dividends and low volatility make them ideal long-term holdings. For banks, attracting insurance capital optimizes ownership structures and boosts market confidence.
**Ping An Life’s ABC Stake Hits 4.913 Billion Shares** In Q3, Ping An Life, under Ping An Group, significantly increased its stakes in state-owned banks. It became ABC’s fifth-largest A-share shareholder with a 32.773 billion yuan position and raised its PSBC A-share holding to 2.382 billion shares (1.98% stake), worth 13.699 billion yuan.
ABC reported Q1–Q3 revenue of 550.876 billion yuan (+1.97% YoY) and net profit of 222.323 billion yuan (+3.28% YoY), with its stock rebounding nearly 20% in October after a September dip. PSBC posted revenue of 265.080 billion yuan (+1.82% YoY) and profit of 76.562 billion yuan (+0.98% YoY), with corporate loans surging 17.91% and fee income up 11.48%, signaling successful transformation.
Ping An Group further bought 6.416 million PSBC H-shares on October 10, lifting its H-share ownership to 50.05%. It also raised stakes in ABC, China Merchants Bank, and ICBC H-shares to 59.22%, 54.08%, and 54.21%, respectively, with cumulative investments exceeding 100 billion Hong Kong dollars this year.
Tian Lihui emphasized insurers’ preference for undervalued H-shares with high dividends, aligning with their dual need for safety and yield. Guo Xiaotao, Ping An’s Co-CEO, earlier stated that the group’s long-cycle investment strategy, including preemptive bets on high-dividend state banks, delivered industry-leading returns.
**Bank Stocks Remain Insurance Funds’ Anchor** Despite portfolio adjustments, insurers’ continued inflows underscore bank stocks’ pivotal role. Wind data shows 23 A-share banks had insurance funds among top shareholders, with aggregate holdings (ex-Ping An Bank) at 316.519 billion yuan. New positions were established in ICBC, Wuxi Bank, Changshu Bank, and Bank of Nanjing, while others saw increased stakes.
Analysts note banks’ defensive appeal—low valuations, high dividends, and transformation-driven growth—drove insurers’ counter-cyclical moves, with Q3’s correction offering entry opportunities.
Top insurers diverged: Ping An expanded holdings, while China Life rebalanced. China Life became ICBC’s top-ten shareholder (757 million shares, 0.21%) and raised its China CITIC Bank stake to 1.48%. It also entered Bank of Nanjing’s top ten (257 million shares, 2.08%) but cut PSBC A-shares by 57.9291 million (0.69% stake).
Mid-sized insurers also acted: Dajia Life lifted its Industrial Bank stake to 3.38% (adding 62.1241 million shares) and secured a board seat. Lian Life targeted regional lenders, entering Wuxi Bank’s top ten (50 million shares, 2.96%) and raising Changshu Bank holdings to 2.11%, joining Dongwu Life (1.99%) and Taikang Life (1.66%) for a combined 5.76% stake.
Regional banks attracted attention: Hong Kang Life, holding 4.95% of Suzhou Rural Commercial Bank, nominated a director. Minsheng Life raised Zhejiang Commercial Bank H-share ownership to 5%, joining Xintai Life and Taiping Life. The trio also held nearly 10% of Zhejiang Commercial Bank A-shares, stabilizing its ownership.
Looking ahead, Bai Wenxi, Chief Economist of the China Enterprise Capital Alliance, sees room for bank stock valuations to rise. Amid persistent "asset shortages," dividend-paying banks remain compelling.
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