On March 30, New China Life Insurance Company Ltd. held its 2025 annual results briefing. Vice President Qin Hongbo stated that the company achieved a total investment return rate of 6.6% for 2025. After adjusting for relevant comparable factors, the actual rate reached 6.9%, maintaining a leading position within the industry. This performance is the result of the company's long-term commitment to value investing, long-term investment strategies, and the scientific management of assets and liabilities.
Regarding interest rate trends and equity investment prospects for 2026, Qin Hongbo indicated that, in terms of interest rate market movements, New China Life's asset management division believes the short-term interest rate market will exhibit a volatile pattern, with credit spreads narrowing and term spreads widening. Specifically, the short-end funding environment is relatively loose and more certain, while ultra-long-term bond volatility has increased, leading to a divergence in the trends of short-end and long-end interest rates. In an era of low interest rates, the key to achieving reasonable returns from fixed-income investments lies in accurately gauging interest rate movements and identifying structural opportunities.
Regarding the equity market, Qin Hongbo emphasized that New China Life Insurance Company Ltd. remains firmly optimistic about the medium to long-term development prospects of China's capital markets. The company will focus on three main investment themes: first, industries experiencing upward cycles with continuously improving performance; second, sectors aligned with national strategic directions, particularly those related to new quality productive forces; and third, the ongoing implementation of a high-dividend investment strategy suited to a low-interest-rate environment.
Based on this market outlook and established strategies, Qin Hongbo clarified that for 2026, the company will adhere to three core principles in asset allocation. First, it will persistently uphold the principle of asset-liability matching, arranging asset duration and structure appropriately based on liability characteristics to ensure investment returns effectively cover liability costs. Second, it will maintain a philosophy of diversification and multi-asset allocation, building reasonable allocation ratios across fixed income, equities, and alternative investments to continuously optimize the portfolio's structure, enhance its risk resilience, and improve return flexibility. Third, it will adhere to an absolute return orientation, prioritizing safety margins amid market volatility while actively seizing structural opportunities to strive for long-term, stable investment returns for the company and its clients.
Qin Hongbo noted that the instability of the macroeconomic environment and financial markets in 2026 presents both challenges and opportunities for insurance fund management. New China Life Insurance Company Ltd. will closely monitor macroeconomic conditions and policy changes, aiming to deliver sustained returns for investors and clients.
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