A new round of insurance capital comes to China Life, CPIC has accelerated the pace of market entry

A new round of insurance capital comes to China Life, CPIC has accelerated the pace of market entry
Original title: A new round of bidding for insurance funds is coming!China Life and CPIC have been sweeping goods for three thousand years, and the speed of entering the market has started!  Authoritative, in-depth, and practical financial information is here. Following the appearance of more than 2 billion placards in the capital market in January, insurance capital has recently accelerated the placard rhythm again!  Today, CPIC Life announced on the official website of the China Insurance Association that the company had completed its acquisition of Jinjiang Capital (2006) on February 19.HK) holding a sign.Yesterday, life insurance leader China Life just announced that from February 17th to 19th, it will increase its H-share holdings in Agricultural Bank for three consecutive days and trigger a plaque.  This is the fourth time that an insurance company has announced a placard since this year. China Life, CPIC Life, Taiping Life, and Huatai Asset Management have announced the listing of listed companies.  Two stocks favored by insurance capital On February 19, CPIC Life’s trustee, CPIC Capital Management, purchased Jinjiang Capital in the Hong Kong market through a managed QDII account.After the card was raised, CPIC Life held Jinjiang Capital 6978.60,000 shares, accounting for 5.015%, this is the first placard of CPIC funds this year.  According to a research report written by Shen Wanhongyuan in January this year, comprehensively considering the impact of supply and demand and macroeconomics, it is expected that the hotel recovery trend is expected to gradually transform after the second quarter of 2020.Jinjiang Capital is gradually shifting from an asset-heavy model to an asset-light one. Sustained asset-lighting is the inevitable way for the company’s subsequent development. It is optimistic that the hotel industry will bottom out and recover in the second quarter.  According to the announcement, CPIC Capital Management has paid close attention to the company’s operating conditions and subsequent market reactions, and does not rule out the possibility of further investment in the future.  On the same day, China Life held the H-shares of Agricultural Bank of China.From February 17th to 19th, China Life successively increased its holdings of 6.2 million shares, 30 million shares, and 45 million shares in Agricultural Bank of China, for a total of 81.2 million shares.As of February 19, China Life held 15 H shares of Agricultural Bank of China.3.7 billion shares, accounting for 5.0018%.  Huatai Securities’ financial team analyzed that the “Report on the Implementation of China’s Monetary Policy in the Fourth Quarter of 2019” corrects the market’s perception of the growth rate of bank profits, highlighting that most of bank profits are used to supplement core tier 1 capital.This means that although the regulators guide banks to give benefits to the real economy, they will not significantly reduce the profit margins of banks.  An investor added that the basic interest rate of deposits will be gradually adjusted and retained for a long time, and will be adjusted as appropriate, which means that the cost of bank debts will have room to fall in the future.At the same time, a prudent monetary policy requires a more flexible and appropriate formulation, and the prospect of maintaining a reasonable and adequate liquidity will create an interbank interest rate environment for banks to generate income.In summary, this year the listed banks have limited declines in their interest margins, outstanding asset endowment, and bank stocks with incentives to improve the cost of debt.  Due to the danger of risk capital choosing to increase Hong Kong stocks, the above-mentioned investors said that at present, the H-share conversion of Agricultural Bank of China is at a historically low level.According to Wind data, the current PB H-share ratio of Agricultural Bank of China is 0.52, which is lower than the average of three years.72, in a severely underestimated range, it is estimated that repair is expected to drive upward.As of February 25, the closing price of A shares of Agricultural Bank of China was 3.43 yuan, the closing price of H shares equivalent to RMB 2.82 yuan, A / H premium income 1.twenty two.  The pace of risk capital listing has clearly accelerated. Compared with last year, the pace of risk capital listing has significantly accelerated this year.  According to the disclosure of the Insurance Industry Association, less than two months after the start of the year, China Life, CPIC Life, Taiping Life and Huatai Asset Management have listed four listed companies.For comparison, there was only one risk fund placard in the first two months of last year.  After accelerating the pace of increasing the number of listed companies, the proportion of equity investments in total assets of insurance capital has also increased significantly.  The announcement showed that on the day when the termination of the bidding was completed: China Life’s equity assets accounted for 18 of the total assets at the end of the first three quarters of 2019.0873%; CPIC Life’s equity assets accounted for 16 at the end of the fourth quarter of 2019.27%; Taiping Life’s equity assets accounted for 14 at the end of the first three quarters of 2019.99%.  Calculated based on the increase in closing prices during the listing period, China Life and CPIC Life’s current round of listing funds will be equivalent to approximately RMB 2.3.3 billion yuan.Coupled with more than 2 billion IPO funds from Taiping Life Insurance and Huatai Assets, this year’s insurance funds may have exceeded 2.4 billion US dollars.  Accelerated entry of insurance capital into the market has started. In fact, since last year, the attitude of insurance capital to equity investments has gradually warmed.The performance of the first two months of this year shows that the pace of insurance capital’s accelerated entry into the market has begun.  In a recent interview with the Shanghai Securities News, Chen Dexian, chief investment officer of Ping An of China, admitted frankly: “This year, our view is that the price level of index bonds and the relative attractiveness of stocks differ.”From a strategic point of view, we still adhere to long-term investment, value investment, counter-cyclical operations, centralized holdings, preference for high dividends, and underestimation of large-cap stocks.At the same time, it is expected to increase the allocation ratio of high-quality blue chips that can be accounted for using the equity method (long-term equity investment).He explained that adopting the law of equity can reduce the financial changes of insurance companies to a certain extent, and the income held will not be affected by the changes in the companies invested in the secondary market.  In fact, in order to cope with the adjustment of accounting regulations for new financial instruments, since last year, blue-chip stocks in long-term equity investments and equity assets have high investment returns and high dividends, which are very close to the characteristics of insurance funds. They have been the focus of the allocation of various insurance institutions.  Recently, a survey of hundreds of insurance capital leaders led by the China Insurance Asset Management Industry Association showed that when asked “what kind of big assets do you like most in the next quarter?”Asset Class.  If the policy allows some insurance companies to appropriately increase the equity asset investment ratio, 74% of the substitutes are blunt and willing to increase at least 2 alternatives.Among them, 34% of stakeholders 杭州桑拿 are willing to increase positions by 4 to 6 replacements, and 10% of resetters are willing to increase positions by 8 to 10 replacements.  Edit: Chen Yu