Cross-holdings among insurance stocks have become a preferred long-term allocation for insurance capital.
Since the beginning of 2026, insurance companies have once again intensified their mutual holdings of each other's shares. The competitive relationships that once existed among major institutions in terms of channels, clients, and products appear to be quietly shifting—rivals remain rivals, but they have also become shareholders.
As of now, Ping An Insurance (Group) Company of China, Ltd. holds 16.12% of China Life Insurance Company Limited's H-shares and 12.08% of China Pacific Insurance (Group) Co., Ltd.'s H-shares. China Life holds 1.38% of Ping An's A-shares. New China Life Insurance Company Ltd. holds 0.41% of The People's Insurance Company (Group) of China Limited's A-shares. Currently, there are no insurance companies among the top ten shareholders of New China Life.
This trend of mutual holdings among insurers is driven by a combination of factors, including persistently low long-term interest rates, worsening asset shortages, undervalued insurance stocks, the discount advantage of H-shares, and policy guidance. It can be said that insurance stocks have become the go-to choice for long-term allocation by insurance capital.
Ping An's Heavy Position in China Life H-Shares at 16.12% Signals Warming Cross-Holdings Disclosures from the Hong Kong Stock Exchange show that on May 18, Ping An increased its holdings of China Life H-shares by 56.75 million shares, spending approximately HK$1.68 billion. On May 20, Ping An Life Insurance further increased its holdings by 43.835 million shares, spending about HK$1.282 billion. After these two moves, Ping An's holdings of China Life H-shares rose from approximately 14.37% to 16.12%, totaling around 1.2 billion shares.
Since 2026 began, Ping An and its subsidiaries have frequently increased their holdings of China Life H-shares. On January 22, Ping An Life purchased 11.891 million shares. On February 2, Ping An bought another 10.895 million shares, raising its stake to 10.12%. On February 3, Ping An Asset Management continued to increase holdings by 8.583 million shares. In April, Ping An made additional purchases...
Besides China Life, Ping An also continued to increase its holdings of China Pacific Insurance (CPIC) H-shares. On March 25, Ping An bought 3.1044 million CPIC H-shares at HK$32.3919 per share, involving approximately HK$101 million, raising its stake from 11.97% to 12.08%.
On the other side, China Life also purchased Ping An A-shares. Ping An's first-quarter report for 2026 shows that China Life holds about 249 million Ping An shares through its "Traditional-Ordinary Insurance Product-005L-CT001沪" account, representing a 1.38% stake, making it Ping An's tenth-largest shareholder.
New China Life continued to increase its holdings of The People's Insurance Company (Group) of China Limited (PICC). PICC's 2025 annual report shows that two fund accounts under New China Life collectively held about 159 million PICC shares, a 0.36% stake. By the end of the first quarter of 2026, the total holdings increased to approximately 178 million shares, raising the stake to 0.41%.
Thus, the pattern of mutual holdings among listed insurers is largely established: Ping An holds 16.12% of China Life H-shares and 12.08% of CPIC H-shares; China Life holds 1.38% of Ping An A-shares.
Behind this trend, the primary reason remains low interest rates. With long-term rates persistently low and returns on traditional fixed-income assets declining, pressure on insurers' asset sides is becoming increasingly evident. Insurance companies manage long-term funds and face relatively rigid costs on the liability side, necessitating the search for more stable, longer-term assets with clearer return sources on the asset side.
The second reason is valuation mismatch. Over the past few years, listed insurers have been chronically undervalued, particularly with H-shares trading at a discount compared to A-shares. For insurance companies familiar with industry cycles and balance sheets, peer stocks are not unfamiliar assets. In a sense, "insurers understand insurers best," which reduces information asymmetry and makes peer stocks attractive for being "understandable, holdable, and offering stable dividends."
Lastly, there is the goal of enhancing investment returns. Insurance stocks offer average dividend yields of 3%-6%, two to three times higher than government bonds. High dividends provide stable cash flow, while valuation recovery offers capital gains, aligning well with insurance capital's need for long-term stable returns.
With characteristics like "high dividends, low valuation, and good liquidity," insurance stocks hit all the right notes. For insurers themselves, cross-holdings can boost dividend income from equity assets in their investment portfolios and offer opportunities to benefit from valuation recovery. Put simply, insurance companies need "stable money," and insurance stocks provide "long-term money." Amid asset shortages, they are the ideal choice for long-term allocation by insurance capital.
The mutual purchases by leading companies themselves reflect confidence. However, looking deeper, beyond "shared prosperity," there is also "shared risk." If the insurance sector faces overall pressure, cross-holdings could amplify valuation volatility. Additionally, there are liquidity considerations. The larger the scale of insurance capital purchases, the harder it becomes to exit. For example, Ping An's 16.12% stake in China Life H-shares corresponds to a holding size of approximately HK$34.88 billion, based on China Life's Hong Kong market capitalization of around HK$216.389 billion, which is substantial.
What Does the Shift from Rival to Shareholder Signify? Taking a longer-term view, the wave of mutual holdings among listed insurers in 2026 can be seen as a continuation of 2025.
In August 2019, China Life continuously bought CPIC H-shares in the Hong Kong market, increasing its stake from 4.87% to 5.04%, crossing the 5% disclosure threshold. After this, China Life held about 140 million CPIC H-shares. By November 2022, China Life reduced its stake in CPIC H-shares to below 5%, marking the end of that cycle of cross-holdings.
The significance of 2019 lay in "breaking the ice." At that time, the impact of new asset management regulations persisted, supply of non-standard assets contracted, and insurance capital began seeking long-term equity assets anew. Insurance stocks were undervalued, with H-shares showing significant discounts. China Life's purchase of CPIC resembled a value investment trial. Moreover, interest rate pressure in 2019 was not as severe as in 2025 or 2026, demand for equity allocation by insurance capital was weaker, and the industry remained cautious about such holdings.
The real turning point came in 2025. On August 11, Ping An bought 1.7414 million CPIC H-shares, raising its stake from 4.98% to 5.04%, crossing the disclosure threshold. It continued to increase holdings, reaching 11.28% by mid-September. On August 12, Ping An bought about 9.5 million China Life H-shares, raising its stake above 5%. By the end of 2025, Ping An held about 824 million China Life H-shares, an 11.07% stake.
In the fourth quarter of the same year, China Life bought Ping An A-shares, entering Ping An's top ten circulating shareholders. New China Life bought PICC A-shares, with two fund accounts collectively holding about 159 million shares, becoming significant circulating shareholders of PICC. In 2025, cross-holdings among insurers evolved from isolated "disclosure threshold crossings" to simultaneous advancements by multiple companies, multiple accounts, and in multiple directions.
The reasons for the 2025 wave are evident: deeper interest rate declines, more pronounced asset shortages, lower valuations of listed insurers, and more attractive H-share discounts. At the same time, policy guidance for long-term capital entering the market strengthened, and insurance capital needed longer-term assets to match liabilities... Thus, peer stocks naturally became a logical choice.
The cross-holdings in 2025 have created a sector-wide effect. Ping An buying CPIC and China Life, China Life buying Ping An, and New China Life buying PICC collectively signal that insurance companies are not only looking at others but also recognizing the long-term value of their own industry. For the capital market, such purchases help stabilize expectations.
Looking ahead, mutual holdings among listed insurers are likely to continue, but the pace may become more rational.
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