Back    Zoom +    Zoom -
Minsheng Securities: Room for Equity Investment by CN Insurers Expected to Open Up; CPIC, CHINA LIFE, PICC P&C Recommended
Recommend
17
Positive
31
Negative
9
Minsheng Securities released a report on the “Implementation Plan for Promoting Medium- and Long-Term Capital Entry into the Market” jointly issued by six government units of China.

Yesterday, the General Office of the Central Committee for Finance, the China Securities Regulatory Commission (CSRC), the Ministry of Finance (MOF), the Ministry of Human Resources and Social Security (MOHRSS), the People's Bank of China (PBOC), and the National Financial Regulatory Administration (NAFR) jointly issued the “Implementation Plan on Promoting the Entry of Medium- and Long-term Funds into the Market”.

Related NewsJPM: NCI 2024 Profit Largely Beats Forecasts, But Strong Mkt Reaction Uncertain
The authorities clearly enhance the proportion and stability of A-share investment of commercial insurance funds, and the space for insurance investment in equity is expected to open up. The Plan formulates targeted reforms addressing some of the hiccups and hurdles of the current insurance capital investment in equity.

Enhancing the assessment cycle is expected to really lengthen the investment cycle and match the attributes of long-term capital, in the broker’s view. At the same time, the second batch of pilot long-term stock investment by insurance funds is envisioned to promote the implementation and gradually expand the scope of participating organizations and the scale of capital. Insurance funds are expected to share the benefits brought by the development of the capital market while acting the role of a good patient capital.

The liquidity environment and fundamentals are supportive at the moment. Raising the proportion and stability of equity investment and establishing a dynamic adjustment mechanism for preset interest rates will help insurance companies cope with potential interest rate spread risks.

Related NewsCICC Envisions Implementation of Mid-to-Long Term Capital Mkt Entry System to Impact Mkt Ecology, Real Economy Development
Individual stocks recommended for attention include CPIC (02601.HK), NCI (01336.HK), CHINA LIFE (02628.HK), PICC P&C (02328.HK), and SUNSHINE INS (06963.HK). As for brokers, the growth of self-operated income in 2024 is predicted to propel the overall performance recovery. The stable operation of the capital market will also help accelerate the bottoming process of brokers' performance. Minsheng Securities recommended to focus on CGS (06881.HK), CITIC SEC (06030.HK) and HTSC (06886.HK) and other leading Chinese brokers.
AAStocks Financial News