The first instance of an insurance capital stake buildup in 2026 has emerged! On January 14, China Pacific Insurance (Group) Co., Ltd. (CPIC) Life announced that on January 9, 2026, it increased its holdings of Shanghai International Airport Co.,Ltd. A-shares by 72.424 million shares through block trades. Following this stake increase, CPIC Life, its affiliates, and acting-in-concert party Pacific Asset Management Co., Ltd. collectively hold approximately 124 million A-shares of Shanghai International Airport Co.,Ltd., representing 5.00% of its A-share capital.
Since 2024, the wave of insurance capital stake buildups has been gradually recovering, with approximately 40 such instances recorded in 2025, marking a new high in nearly a decade. Huachuang Securities indicated that compared to the surge a decade ago, the current wave stems partly from the emphasis on dividend-paying stocks in a low-interest-rate environment, and partly from considerations of Return on Equity (ROE), aiming to include high-quality targets through long-term equity investments. Looking ahead to 2026, these two drivers are expected to remain relevant, suggesting the trend of insurance capital stake buildups may continue.
On January 9, CPIC Life increased its holdings of Shanghai International Airport Co.,Ltd. A-shares by 72.424 million shares via block trades. After this move, its direct holding ratio reached 4.9994%. Based on Shanghai International Airport Co.,Ltd.'s A-share closing price on January 9, the book value of CPIC Life's holdings was approximately 4.067 billion yuan, accounting for 0.15% of its total assets as of the end of the third quarter of 2025, which complies with regulatory requirements.
The announcement revealed that the parties involved in this stake increase were CPIC Life, its affiliates, and the acting-in-concert party, Pacific Asset Management. Prior to the increase, CPIC Life and Pacific Asset Management held 52 million A-shares of Shanghai International Airport Co.,Ltd.; after the increase, their total holdings reached 124 million shares, representing 5% of the A-share capital.
As of September 30, 2025, CPIC Life's total assets amounted to 2,677.424 billion yuan, with net assets of 152.537 billion yuan, and a comprehensive solvency adequacy ratio of 197%. During the same period, the book value of the company's equity asset investments was 500.553 billion yuan, accounting for 20.81% of its total assets as of the end of Q2 2025.
Regarding this share acquisition, CPIC Life and Pacific Asset Management stated it was based on their own investment needs to increase holdings in the listed company. The funds were reportedly sourced from insurance liability reserves. For management purposes, CPIC Life noted the investment would be classified under equity investment management. The entrusted manager, Pacific Asset Management, will closely monitor the company's operational performance and subsequent market reactions, and does not rule out the possibility of further increasing the investment later.
As the life insurance subsidiary of China Pacific Insurance Group, CPIC Life was established in November 2001 and is headquartered in Shanghai. In 2024, CPIC Life achieved scale premiums of 261.08 billion yuan, a year-on-year increase of 3.3%; new business value reached 13.258 billion yuan, up 20.9% year-on-year; net profit was 35.821 billion yuan, surging 83.4% year-on-year; and its comprehensive solvency adequacy ratio was 210%, exceeding regulatory requirements.
This marks the first insurance capital stake buildup of 2026, continuing the momentum from 2025. In recent years, against the backdrop of policies promoting "long-term capital" entry into the market, insurance companies have steadily increased their allocations to the equity market. The number of stake buildups by insurers rose to 20 in 2024 and further climbed to around 40 in 2025, hitting a near-decade high.
In terms of sector distribution, financial stocks remain a key focus for insurance capital stake buildups. In 2025, 17 instances involved financial listed companies, predominantly targeting H-shares of banks. Concurrently, assets in utilities or quasi-utilities such as water, power, and environmental protection have also frequently attracted insurance capital allocations. These targets generally share characteristics like relatively stable cash flows, clear dividend expectations, and lower valuation midpoints.
The profile of targeted companies indicates a preference for investments with low valuations, high dividends and payouts, and strong earnings certainty, building a "safety cushion" for equity investments. This is because, under new accounting standards, high-dividend stocks can be classified into the Fair Value Through Other Comprehensive Income (FVOCI) account, avoiding significant fluctuations in the income statement. Bank stocks are typical examples of low-volatility, high-dividend representatives, with H-share bank dividend yields particularly attractive compared to long-term bond yields.
Guojin Securities analysis noted that as of the end of the third quarter of 2025, statistics on the A-share heavy holdings of insurance companies showed a clear preference for high-dividend characteristics, with banks occupying an absolute heavyweight position. The total market value of A-share bank stocks heavily held was 316.5 billion yuan; excluding banks held as long-term equity investments, the total holding value was 259 billion yuan. High-dividend stocks are expected to remain the primary allocation direction for insurance capital.
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