The latest asset allocation and equity market positioning of insurance institutions, managing nearly 40 trillion yuan in long-term funds, have been revealed with the release of first-quarter 2026 insurance industry fund utilization data and the conclusion of A-share listed companies' Q1 reports.
Data disclosed by the National Financial Regulatory Administration shows that as of the end of Q1 2026, the balance of insurance company fund utilization reached 39.44 trillion yuan. While the scale steadily expanded, the structure of major asset allocations continued to optimize, with a clear increase in the willingness to allocate to equity assets.
Wind data indicates that insurance capital increased its holdings in A-shares against the trend in Q1, significantly holding 641 individual stocks. The total number of shares held increased by over 4.2 billion shares quarter-over-quarter, with the total market value of key holdings at the quarter's end nearing 1.6 trillion yuan. In terms of allocation, insurers continued a "barbell" strategy. Bank stocks became a core sector for increased holdings, accounting for a prominent share of the held market value. Leading insurers were notably active in adding positions; for instance, China Life Insurance increased its holdings in Bank of China by 467 million shares. Simultaneously, insurers actively optimized their structure, focusing on utilities and technology sectors, with companies like Cgn Power Co.,Ltd. and Luxshare Precision Industry Co.,Ltd. receiving increased allocations.
An expert noted that industries like banking offer stable profits and high dividend yields, with dividend income directly boosting current period profits. Under new accounting standards, stock price fluctuations do not affect current profit and loss, making them ideal "ballast" assets.
Insurance capital increased equity asset investment, adding 4.2 billion shares in Q1. As large, long-cycle institutional investors in China's capital market, the asset allocation trends of insurance funds reflect, to some extent, institutional judgments on the long-term value of the macroeconomy and equity markets.
Against the backdrop of shifting household deposits and steadily growing premium income, the total scale of insurance fund utilization reached a new level. By the end of Q1 2026, the balance stood at 39.44 trillion yuan, a quarter-over-quarter increase of 2.49%, providing stable long-term funding support for the capital market.
Looking at the major asset allocation structure, fixed-income assets remain the "foundation" for insurance capital. Breaking down by entity, insurance companies maintained high proportions in bank deposits and bond allocations, while the proportion allocated to equity assets steadily rose. Data shows that by the end of Q1, bonds and bank deposits accounted for 58.69% of life insurance companies' balances. Stocks and securities investment funds reached 5.47 trillion yuan, accounting for 15.39%, a slight increase of 0.13 percentage points quarter-over-quarter. For property and casualty insurers, bonds and bank deposits accounted for 57.28%, while stocks and securities investment funds reached 1.42 trillion yuan, accounting for 17.54%, a slight increase of 0.4 percentage points quarter-over-quarter, indicating a comprehensive strengthening of willingness to allocate to equity assets.
Regarding A-share market stock holdings, Wind data shows that by the end of Q1 2026, insurance capital appeared among the top ten circulating shareholders of 641 A-share listed companies. The total number of shares held reached 105.956 billion, a quarter-over-quarter increase of 4.243 billion shares. The total market value of key holdings at period-end was 1.59 trillion yuan, marking a fifth consecutive quarter of increasing A-share holdings against the trend.
An analyst pointed out that under the encouragement of medium-to-long-term fund entry methods, 30% of new premium income is invested in the A-share market. This is why insurance companies' A-share holdings have been consistently rising, and future A-shares will continue to see sustained capital inflows from insurance funds.
A securities non-bank financial analyst stated that against the backdrop of a continuously declining long-term interest rate center, yields on traditional bonds and deposit-like assets are under pressure, and the pattern of asset scarcity persists. This pressures insurance capital to increase the proportion of equity asset allocation, seeking to enhance long-term returns through quality equity targets to match the long-term liability costs of insurance products. Simultaneously, regulatory authorities continue to optimize insurance fund investment policies, relaxing equity investment restrictions and guiding long-term funds into the market, providing institutional safeguards for insurers to increase A-share allocations. "There is still room for growth in the proportion of equity assets held by insurance capital. They will continue to steadily deploy into the equity market, playing the role of long-term capital ballast," the analyst noted.
Bank stocks become primary direction for increased holdings; technology sector gains favor. Looking at the holding structure, insurance capital continued its barbell allocation strategy. Bank stocks remain the core "ballast" for insurance funds, while utilities, high-end manufacturing and technology, and leading consumer companies became key deployment directions, making the holding structure more balanced and diversified.
The banking sector remains a core area for heavy insurance capital investment. Excluding China Life Group's holdings in China Life Insurance, insurance capital's holdings in bank stocks account for nearly 54% of the total held market value. Bank stocks occupy 8 of the top 10 spots by held market value, with Ping An Bank, Agricultural Bank of China, China Minsheng Bank, Shanghai Pudong Development Bank, Hua Xia Bank, Postal Savings Bank of China, Industrial and Commercial Bank of China, and China Merchants Bank consistently remaining core holdings for insurance capital.
In Q1 of this year, insurance capital concentrated on increasing positions in quality bank targets. Bank of China, Industrial and Commercial Bank of China, Industrial Bank, China CITIC Bank, and Bank of Shanghai were among the top for increased holdings. Leading insurers showed more significant increases. Among them, China Life Insurance increased its holdings in Bank of China by 467 million shares and newly entered as a top ten circulating shareholder in Bank of Hangzhou, Bank of Shanghai, and Bank of Jiangsu. New China Life Insurance and Taiping Asset also concentrated on increasing holdings in Bank of China, holding 167 million and 139 million shares respectively at period-end. Ruizhong Life Insurance increased holdings in Industrial Bank, with period-end holdings reaching 569 million shares.
While maintaining bank stock positions, insurance capital actively optimized its holding structure, moving beyond reliance on a single financial sector to deeply deploy into utilities, transportation, and other fields.
Among these, power leaders like Cgn Power Co.,Ltd., SDIC Power Holdings, and Zhejiang Zheneng Electric Power were particularly favored. Ping An Life Insurance newly entered as a top ten circulating shareholder in Cgn Power Co.,Ltd. in Q1, holding 426 million shares at period-end, while also significantly increasing holdings in SDIC Power Holdings and Zhejiang Zheneng Electric Power. In transportation, Shanghai International Airport, Daqin Railway, and Shandong Hi-Speed Group received continued increases from insurance capital. In the cyclical resources sector, targets like China Shenhua Energy, Hunan Valin Steel, and Inner Mongolia Baotou Steel Union became important choices for diversified allocation by insurance capital.
The high-end manufacturing and technology sectors also saw continued deployment from insurance capital, with the new quality productivity direction becoming a core focus. Sub-sectors like hardware equipment, precision manufacturing, and semiconductor materials received significant increases from insurance capital. China Life Insurance newly entered positions in Luxshare Precision Industry Co.,Ltd. and Avary Holding (Shenzhen) Co., Limited. Ping An Life Insurance and Ping An Annuity respectively newly entered positions in Jme Tech and Jianghai Capacitor, while PICC Group increased holdings in HuaCe Navigation.
An expert pointed out that investing in high-end manufacturing is both a move by insurance capital to align with the national strategic direction of "manufacturing power" and "new quality productive forces," and a key measure to optimize long-term asset structure and seek return elasticity.
The consumer sector also received increased allocations from insurance capital. Hexie Health newly entered a position in Inner Mongolia Yili Industrial Group, holding 51.89 million shares at period-end. Wuliangye Yibin, Shuanghui Development, New Hope Dairy, and Qianhe Condiment & Food also saw incremental allocations from insurance capital.
In contrast, previously popular sectors like construction, power equipment, and real estate saw reductions by insurance capital. Stocks like Power Construction Corporation of China, Goldwind Science & Technology, and Grandjoy Holdings were among the top for reduced holdings by insurance capital.
"Looking ahead, insurance capital's equity investment will continue to increase steadily. Strategically, it will adhere to the 'barbell' configuration: one end is high-dividend assets as stabilizers, the other end is growth assets like technology and high-end manufacturing to enhance return elasticity," an expert stated.
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