On October 28, a financial frontline news report stated that China Pacific Insurance (Group) Co., Ltd. held its 2026 third-quarter results briefing. Management noted that CPIC's equity allocation has generally always been maintained within a framework based on asset-liability management, solvency constraints, and the risk appetite system.
Management stated that equities are closely related to China's long-term economic performance. From a macroeconomic fundamentals perspective, the company is full of confidence in China's long-term economic improvement, and the resilience and potential of the Chinese economy are beyond doubt. As follow-up policies in the technological transformation sector and in stabilizing growth continue to gain traction, the fundamentals of long-term macroeconomic improvement have not changed. As a barometer of the economy, the capital market still has a very solid foundation for long-term healthy development and possesses the basis for a slow bull market and a long bull market, which provides a very good macroeconomic environment and broad allocation space for insurance funds to make medium- and long-term equity investments.
Management pointed out that the equity proportion in strategic asset allocation, including reasonable tactical allocation space, is a personalized issue for every insurance group. Each group, based more on its own asset-liability management requirements, asset allocation logic including various constraints, sets a more reasonable equity asset allocation ratio for itself, and simple horizontal comparisons cannot be made. Management acknowledged that in a long-term low-interest-rate environment, pressure on fixed-income investment, especially reinvestment pressure, will continue to exist. Moderately allocating equities, especially enhancing net investment yield through equities to hedge the pressure on net investment yield from fixed-income reinvestment, is an inevitable choice. However, how to better control volatility and ensure that equity assets, within the overall asset allocation framework, not only bring long-term risk returns but also avoid excessive impact on short-term performance, is also an extremely challenging issue.
Therefore, CPIC's equity allocation will certainly, under the premise of currently conforming to the long-term reasonable range of strategic allocation, steadily optimize tactical allocation space across accounts and in a measured rhythm. It will not take too many unilateral and aggressive actions, but will better balance various constraints such as return volatility, solvency, long-term return levels, and the challenges faced by current-year financial statements. In this way, equities can provide the entire asset allocation with a more sustainable, risk-adjusted, and good return level that fully covers long-term liability costs.
Management also pointed out that the complexity of equity investment lies in the fact that within equity allocation there still exist issues of how to subdivide and continuously optimize allocation across different sectors and styles. In the first half of this year, severe polarization appeared between different sectors and styles, and then in the third quarter there was a rapid reversal and a new rapid switch, indicating that the market being faced is very complex. For CPIC, the dividend value strategy has always provided the entire group with a more stable net investment yield and maintained a long-term good comprehensive investment return, offering a very balanced choice. Therefore, it will still adhere to the basic underlying stability of its relatively mature dividend value strategy. On this basis, it will integrate the deeper value areas currently faced and must seek richer satellite investment strategy opportunities in the technology sector.
In addition, management stated that although the technology sector has recently undergone a relatively large correction, China's long-term and enormous growth potential in technology is beyond doubt, and new opportunities are inevitably brewing during market adjustments. In particular, listed companies with very solid and stable free cash flow, solid market competitiveness barriers, and excellent management teams are definitely what CPIC will continuously seek. CPIC will provide long-term asset accumulation through diversified equity strategies, further diversify satellite strategies, and supplement important investment sources for the core dividend value strategy.
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