Domestic insurance firms are investing more discreetly and stepping up their entry into the bond market, as reported by the China Securities Journal today.
As regulatory practices tightened at the domestic stock market, insurance capitals are focusing more on targets with a higher value and a more stable return.
Data from the financial service provider Wind had revealed the first quarter performances of 542 A-share firms as of Monday. Of these firms, 24 saw heavy stakes from insurance firms.
Their holdings exceeded RMB 60 million in all of these 24 firms and RMB 100 million in 16 of them.
Most of these firms saw a rise in their profits for the first quarter. Among them, 19 enjoyed a profit growth of over ten percent and more than half of them registered a growth of more than 50 percent.
Behind this robustness lies a discreet investment strategy.
In the first two months of 2018, insurance firms at home directed 12.85 percent of their portfolio to stocks, down by 4.09 percent from January, as pointed out by Zhou Lin, an analyst of Industrial Securities Co., Ltd.
Analysts believed that as regulations become sterner at the stock market, the insurance sector as a whole will be focusing more on shares that boast a higher value and a more stable return.
On the other hand, insurance firms were pouring their funds into the bond market.
In March alone, nine insurance firms had registered 13 bond investment plans with a total amount of RMB 26.55 billion, according to the data released by the Insurance Asset Management Association of China on Monday.
In the first three months, 19 insurance firms registered a total of 50 bond investment plans amounting to RMB 101.77 billion.
This year, nine insurance firms had injected their capital into 27 bond investment plans, of which 16 were for real estate and 11 were for infrastructure.
As regulatory practices tightened at the domestic stock market, insurance capitals are focusing more on targets with a higher value and a more stable return.
Data from the financial service provider Wind had revealed the first quarter performances of 542 A-share firms as of Monday. Of these firms, 24 saw heavy stakes from insurance firms.
Their holdings exceeded RMB 60 million in all of these 24 firms and RMB 100 million in 16 of them.
Most of these firms saw a rise in their profits for the first quarter. Among them, 19 enjoyed a profit growth of over ten percent and more than half of them registered a growth of more than 50 percent.
Behind this robustness lies a discreet investment strategy.
In the first two months of 2018, insurance firms at home directed 12.85 percent of their portfolio to stocks, down by 4.09 percent from January, as pointed out by Zhou Lin, an analyst of Industrial Securities Co., Ltd.
Analysts believed that as regulations become sterner at the stock market, the insurance sector as a whole will be focusing more on shares that boast a higher value and a more stable return.
On the other hand, insurance firms were pouring their funds into the bond market.
In March alone, nine insurance firms had registered 13 bond investment plans with a total amount of RMB 26.55 billion, according to the data released by the Insurance Asset Management Association of China on Monday.
In the first three months, 19 insurance firms registered a total of 50 bond investment plans amounting to RMB 101.77 billion.
This year, nine insurance firms had injected their capital into 27 bond investment plans, of which 16 were for real estate and 11 were for infrastructure.
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