Guotai Haitong: "Notice" strengthens long-term assessment mechanism of state-owned insurance companies, benefitting long-term profit improvement.

Guotai Haitong released a research report stating that on July 11th, the Ministry of Finance issued a notice on "Guiding Insurance Funds to Invest Long-Term and Stable Further Strengthening the Long-Term Assessment of State-Owned Commercial Insurance Companies". The notice further increases the weight of long-term indicators, while taking into account both long-term and short-term assessment goals, which helps insurance funds improve their short-term volatility tolerance, focus on long-term value investment, and enhance profit stability. On the other hand, it also helps to increase the enthusiasm of insurance funds to enter the market and stabilize the long-term capital supply in the capital market. Guotai Haitong maintains a "hold" rating on the non-banking industry.