Guosen: The continuous increase in the allocation of insurance industry rights, with a year-end adjustment in structure.

Guosen released a research report stating that the core of insurance capital allocation strategy in the fourth quarter is as follows: First, dividend assets have opportunities, insurance capital will further explore high dividend assets investment opportunities including OCI equity assets, and may take profits on trading equity assets (including funds, stocks) with a thick floating profit; Second, long-term bonds (including local government bonds, treasury bonds) are still the "fundamental base" for insurance capital, matching the long-term asset allocation needs of insurance capital and reducing the risk of asset-liability duration mismatch; Third, increasing alternative assets has room to grow, such as the current low proportion of overseas assets in insurance capital allocation (less than 10%), still has room for improvement. The report stated that recently, the China Banking and Insurance Regulatory Commission released the fund utilization situation and related data for the insurance industry in the third quarter of 2025. In the third quarter of 2025, due to the short-term "halted sales" impact brought by the industry's scheduled interest rate reduction, the balance of insurance fund utilization exceeded 37 trillion yuan, with a year-on-year growth rate of 16.5%, continuing the high growth trend. From the perspective of static fund conversion rate, the industry-wide conversion rate is 83%, still to a certain extent underallocated. Looking at the performance of the third quarter alone, the insurance industry continued to increase investment in equity assets such as direct investment in stocks and reduced the scale of bank deposits. With the continuous recovery of the capital market and the Shanghai Composite Index breaking through 4000 points, the "profit-making attribute" of equity assets represented by stocks is highlighted. Against this background, insurance capital continues to increase the scale of direct investment in equity assets. By the end of the third quarter, the balance of insurance capital's stock allocation reached 3.6 trillion yuan, with a year-on-year substantial growth of 55.1%, further expanding from the second quarter. Looking ahead to the fourth quarter, considering the impact of asset maturity and factors such as "opening red envelopes" fund rushing allocation, the bank believes that insurance capital still has significant asset allocation demands.