Guotai Haitong: Insurance funds will have more stocks and fewer bonds in the third quarter of 2025. The active management ability of the investment side urgently needs to be improved.

Guotai Haitong Securities released a research report stating that by the third quarter of 2025, the balance of insurance funds utilization has steadily increased, with the proportion of stocks assets further rising, while the proportion of bond assets has declined compared to the previous period. Combined with the performance of listed insurance companies in the third quarter report, the net investment yield continues to show a downward trend in the backdrop of low interest rates and narrowing credit spreads. Guotai Haitong believes that the asset allocation strategy of insurance companies urgently needs to shift from "passive allocation" to "active management", by flexibly seizing market opportunities, continuously optimizing asset allocation structure, and promoting the achievement of stable investment performance. It is expected that the importance of active management capabilities on the investment side will increase, and Guotai Haitong maintains a "hold" rating.