As a typical form of "patient capital," the investment moves of insurance funds have always drawn significant market attention. With A-share listed companies successively disclosing their 2025 annual reports, the latest heavy holdings of insurance funds have also come to light. Wind data shows that, as of April 2, based on the listed companies that have disclosed their 2025 annual reports, a total of 254 A-share companies were heavily held by insurance funds. Among these, the banking sector held the largest number of shares owned by insurers, while industries such as transportation and communications also garnered attention. Industry insiders noted that against a backdrop of asset shortages, high-dividend stocks, exemplified by bank shares, offer both stable dividends and potential for valuation recovery, making them attractive for heavy allocation by insurance funds. Recently, executives from several listed insurance companies have publicly stated they will continue to steadily allocate to high-dividend, low-volatility assets.
Bank stocks, as typical representatives of high dividends and substantial payouts, have long been a key allocation target for insurance funds. Based on the disclosed 2025 annual reports, bank stocks ranked at the top among the individual stocks heavily held by insurance funds by the fourth quarter of 2025. Specifically, Wind data indicates that, as of April 2, and excluding Ping An Insurance (Group) Company Of China, Ltd.'s holdings of Ping An Bank and China Life Insurance Group's holdings of China Life Insurance, seven out of the top ten individual stocks by market value held by insurance funds were bank stocks. These include China Merchants Bank, Agricultural Bank of China, Shanghai Pudong Development Bank, Industrial Bank, Hua Xia Bank, China Minsheng Bank, and Postal Savings Bank of China. The remaining three stocks were China United Network Communications Group, Ping An Insurance (Group) Company Of China, Ltd., and China Telecom.
Why are bank stocks so favored by insurance funds? Economist and New Finance expert Yu Fenghui explained that insurance funds favor bank and telecommunications stocks primarily due to their stability and high-dividend characteristics. As the core of the financial system, banks play a crucial role in the economy with mature profit models and strong risk resilience, providing investors with stable dividend income. Meanwhile, the telecommunications industry holds long-term growth potential against the backdrop of accelerating digital transformation. Notably, investments between peers in the insurance industry have become increasingly common since last year. Previously, Ping An Insurance (Group) Company Of China, Ltd. increased its stake in China Life Insurance's H-shares on two occasions. Furthermore, in Ping An's 2025 annual report, a product from China Life Insurance appeared among its top ten shareholders, ranking tenth with a 1.14% stake in Ping An's A-shares. Industry insiders pointed out that insurance stocks are typical high-dividend stocks, reflecting peer recognition of the long-term development prospects and investment value of leading insurers.
In 2025, benefiting from strong performance on the investment side, many insurance companies achieved solid results. Looking ahead to 2026 and throughout the 15th Five-Year Plan period, which sectors will insurance funds prioritize? Statements from various institutions suggest that proactively positioning in areas related to new quality productive forces will be a consensus among leading insurers. "Equity investment is key to stabilizing and enhancing investment performance. We will adhere to a steady and progressive approach, continue focusing on high-dividend stock allocations, while also concentrating on the growth opportunities embedded in the 15th Five-Year Plan outline, strengthening research on key industries and sectors," said Cai Zhiwei, Vice President of PICC Group, regarding future equity investment directions.
"For long-cycle patient capital, the most important thing is to align with the nation's economic development direction," stated Guo Xiaotao, Co-CEO of Ping An Insurance (Group) Company Of China, Ltd., during the company's earnings conference. He mentioned the company's investment strategy involves seeking certainty amidst uncertainty. Factors like new quality productive forces, vigorous infrastructure development, overall national economic growth, high dividends and financial strength, and the Healthy China initiative represent certainties and are important directions for long-term investment asset allocation.
Liu Hui, Vice President and Chief Investment Officer of China Life Insurance, summarized the company's investment considerations into three aspects: First, riding the momentum by firmly investing in Chinese assets to capture the era's alpha from new quality productive forces. Second, acting strategically by adhering to long-termism and making strategic layouts with a forward-looking view. Investments will revolve around a clear strategic asset allocation benchmark without deviating from liability attributes. Third, adapting flexibly by making tactical adjustments and strategy optimizations nimbly.
Behind these strategies, which specific sectors are likely to see increased allocations from insurance funds? Yu Fenghui predicts that high-quality companies in sectors such as infrastructure construction, utilities (like power and water), consumer goods (especially essentials), and pharmaceuticals and health are poised to receive increased allocations from insurance funds. Enterprises in these fields typically possess stable cash flows, sustained profitability, and offer relatively generous cash dividends, aligning with the insurance funds' investment philosophy of seeking stable returns. Simultaneously, supported by national policy directions, leading companies in these industries exhibit greater certainty in future development, making them a better fit for the investment strategy of insurance funds as "patient capital."
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