As a key source of "patient capital" in China's A-share market, the allocation trends of insurance funds remain a core indicator of market direction. In 2025, insurance funds' stock investments approached 10% of their total allocation, hitting a new high, with equity investments becoming a primary driver for enhancing returns. Entering 2026, policy guidance, industry transformation, and market opportunities are converging, fueling expectations for trillions of yuan in incremental capital to enter the market.
Surveying precedes strategic positioning. Since the beginning of 2026, insurance funds have maintained a high pace of research activities. By the end of February, 132 insurance companies and insurance asset management firms had conducted approximately 1,319 surveys. Institutions such as Taikang Asset Management and Huatai Asset Management were among the most active. Survey focus highlighted a strong preference for technology growth stocks on the ChiNext and STAR markets, particularly in sectors like electronic components, industrial machinery, and integrated circuits, while also maintaining interest in high-dividend assets within the banking sector.
The year 2026 is anticipated to see new trillion-yuan-level capital inflows into the market. In recent years, amid ongoing policy encouragement for long-term capital participation, insurance funds have steadily increased their allocation to equities, making them a crucial channel for boosting returns. According to the latest data from the National Financial Regulatory Administration, by the end of the fourth quarter of 2025, insurance funds' utilization balance reached 38.48 trillion yuan, up 15.7% from the start of the year, maintaining steady growth. Equity allocations remained at historically high levels, with combined investments in stocks and funds totaling 5.7 trillion yuan, accounting for approximately 15.4% of the total. Stock investments alone exceeded 3.73 trillion yuan, representing 9.7% of the total—an increase of 1.3 trillion yuan from 2024, a 53.5% rise. Notably, stock investments by life insurance companies surpassed 10% of their total, up significantly from 7.57% in 2024.
This shift is driven by both continuous policy support and structural adjustments within the industry. "Amid the transition to dividend-oriented insurance products, insurance capital is actively entering the market, while vibrant equity market activity and rotating thematic trends have pushed up the proportion of equity allocations," noted Huachuang Securities. Some insurers also revealed that they seized structural opportunities during market lows in 2025, dynamically adjusting equity positions and allocation timing to effectively enhance investment efficiency and significantly boost annual returns.
Looking ahead to 2026, market consensus suggests that insurance funds' allocation to equities will continue to rise, with equity investment remaining a core method for improving returns. A recent survey by the China Banking and Insurance Asset Management Association indicated that stocks and securities investment funds are the most favored domestic assets for insurance institutions in 2026. While most institutions plan to maintain similar allocations to bank deposits, bonds, and other financial assets as in 2025, approximately 33% of insurance asset managers and 67% of insurance companies expressed intentions to increase stock investments, underscoring long-term optimism toward the equity market.
Regarding the scale of additional allocations, major securities firms have offered generally positive though slightly varied forecasts. Huatai Securities projected that new secondary market equity investments by insurance funds could reach 0.9 trillion yuan in 2026, noting that while insurance capital will remain active, the rate of increase may moderate compared to 2025, with a more balanced approach between equities and bonds. They estimated the insurance industry's total investment assets could grow to 42 trillion yuan, with secondary market equity allocations potentially rising to 18.0%. Zhang Xiaotong, an analyst at China Merchants Securities, suggested that robust premium growth on the liability side and expectations of a steady bull market could drive double-digit growth in insurance fund utilization, with product structure reforms reshaping investment strategies. The shorter effective duration and higher return focus of dividend insurance products are likely to further push up equity ratios, potentially maintaining trillion-yuan-level stock investment increments in 2026. In contrast, Sinolink Securities offered a more conservative estimate, forecasting about 650 billion yuan in new capital inflows, with variations in how different institutions increase their positions.
A total of 132 institutions have conducted intensive surveys, with a focus on sectors such as electronic components and industrial machinery. Which areas are patient insurance funds targeting in 2026? Since the start of the year, insurance capital has sustained a high frequency of research, reflecting strong interest in the A-share market. Wind data shows that, by the end of February, 132 insurance entities had conducted surveys involving 1,177 individual stocks. Among these, 314 were on the Shenzhen Main Board, while the ChiNext and STAR boards accounted for 295 and 288 stocks, respectively, with 264 on the Shanghai Main Board. For example, of the 84 stocks surveyed by Taikang Asset Management, 32 were on the STAR Market and 14 on the ChiNext, highlighting a significant emphasis on technology and growth-oriented enterprises.
In terms of sector preferences, industry surveys indicate insurance institutions are broadly optimistic about electronics, non-ferrous metals, power equipment, computers, communications, pharmaceuticals, and basic chemicals in 2026. Key investment themes include semiconductors, defense, AI computing, robotics, energy metals, commercial aerospace, high dividends, biopharmaceuticals, innovation drugs, and corporate globalization. Market participants generally view corporate earnings recovery and liquidity conditions as major factors influencing A-share performance.
Actual survey activity reveals concentrated interest in sub-sectors such as electronic components, industrial machinery, electronic equipment, integrated circuits, automotive parts, communication equipment, and application software, indicating a strategic tilt toward technology manufacturing and industrial upgrading. At the individual stock level, around 410 companies received insurance fund attention in the first two months. Beijing Haitian Ruisheng Science Technology Ltd. (688787.SH) was the most surveyed, attracting 24 insurance institutions. As a leading AI training data service provider with a market cap of about 9.1 billion yuan, it reported a net profit of 14.07 million yuan in 2025, up 24% year-on-year, demonstrating strong growth potential. Titan Wind Energy(Suzhou)Co.,Ltd. (002531.SZ) and Dajin Heavy Industry Co.,Ltd. (002487.SZ) each attracted 19 insurance surveys, both belonging to the heavy electrical equipment industry. Additionally, Zhongji Innolight Co.,Ltd. (300308.SZ) in the electronic components sector was surveyed by 17 insurance entities. The banking sector continued to attract interest based on high-dividend strategies, with Bank Of Shanghai Co.,Ltd. (601229.SH) drawing attention from 14 insurance institutions, including major players like New China Asset Management and PICC Asset Management, reflecting ongoing demand for stable, defensive assets.
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