Hong Kong stock concept tracking | vigorously promoting the entry of medium and long-term funds into the market, further promoting the entry of insurance funds into the market (with concept stocks)

On January 23, the State Council Information Office held a press conference to introduce the situation of vigorously promoting the entry of medium and long-term funds into the market and promoting the high-quality development of the capital market. Liao Min, Deputy Minister of Finance, stated that there is still room for increasing the investment in the capital market based on the operation of funds by large state-owned commercial insurance companies in our country. Deputy Minister of Finance Liao Min stated at the press conference of the State Council Information Office that the next step will be to implement the "Implementation Plan for Promoting the Entry of Medium and Long-term Funds into the Market", further promoting the entry of insurance funds into the market, and revising the assessment system for state-owned commercial insurance companies over a long period. The main considerations are: firstly, to increase the weight of long-term assessment indicators in the operating efficiency category, such as adjusting the weight of the long-term indicator of return on equity to not less than 60%, to increase more long-term funds entering the market, making the assessment period more suitable for the long-term investment cycle; secondly, to implement long-term assessment of state-owned capital preservation and appreciation indicators, to achieve stable appreciation of owners' equity of state-owned capital; and thirdly, to promote state-owned commercial insurance companies to improve their investment management capabilities. China Securities Co., Ltd. suggested focusing on the property insurance sector with significant high dividend characteristics, and life insurance is expected to benefit from the continuous optimization of policy environment and high-quality development prospects. With the introduction and effectiveness of a series of stable growth policies in the future, equity investment is expected to contribute to performance resilience. In terms of performance, the stock market is expected to improve under the resonance of policies, macroeconomy, and relatively loose liquidity environment, thereby driving the improvement of total investment income and profits of insurance companies. In addition, if the strength of macroeconomic recovery exceeds expectations and long-term interest rates are expected to rise, it is recommended to continue monitoring. In terms of valuation, the position of dividend insurance in the product strategy in 2025 is significantly improved, helping to reduce the cost of rigid liabilities, enhance the stability of long-term operating performance, and consequently, in the long term, drive the increase in valuation multiples of listed insurance companies. Furthermore, under the guidance of the new "Ten National Measures for the Insurance Industry", the long-term mechanism for the high-quality development of the insurance industry is further improved, and overall, the industry concentration is expected to further increase, giving leading insurers a competitive advantage. Hong Kong-listed mainland insurance companies include Ping An Insurance (02318), CHINA TAIPING (00966), PICC P&C (02328), CHINA RE (01508), China Pacific Insurance (02601), PICC GROUP (01339), ZA ONLINE (06060), New China Life Insurance (01336), China Life Insurance (02628).