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​China's insurance capital eyes A-shares in 2019

Xinhua Financein CFBOND
2018-12-04 09:27

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China's insurance capital will seek opportunities in A-shares and bet more on tech and financial industries in 2019, according to China Securities Journal on Monday.

Statistics from Wind showed that since October this year, 75 insurance companies in China had undertaken 313 investigations and research activities on over 100 listed companies.

Electronic equipment and instruments sector attracted the most attention with 36 investigations and research received. Gold and electronic components industries came second and third with 29-times and with 21 times visited respectively.

"Insurance capital preferred mid- and long-term, as well as value investments. They think more of benefits, valuations and policies which are in correspondence with petrochemical, pharmaceutical and tech innovation respectively," said Yang Ouwen, an analyst from Chuancai Securities.

Yang predicted that the electronic components industry was promising due to government policy preferences in the long run.

Insurance institutions' frequent investigations and research activities showed their positive attitude towards China's A-share market as well.

Statistics from China's banking and insurance regulator showed that in September this year, insurance funds invested on stocks and securities reached about 2.06 trillion yuan (299.1 billion U.S. dollars), taking up 12.98 percent of the insurance capital for investments, which is nearly half of the 30-percent upper limit.

Many insiders from the insurance companies said if the A-share market continued to go downward in the fourth quarter, more insurance capital would allocate more equity assets to stocks.

A person in charge of the asset management in an insurance company in North China estimated that insurance capital would eye on innovation industry, including 5G, the Internet of Things and smart manufacturing. Stable consumption and financial stocks will also become targets.
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