This is reminiscent of the flagship trend of insurance funds in 2015, which caused market effects and industry disputes. Investors certainly still remember it vividly. Therefore, some investors are worried that insurance funds will come to the capital market again to do things?
Dont scare yourself first! If we clarify the investment logic of this wave of insurance fund raising, then we will find that this wave of raising is different from four years ago. Instead of panic, you can find the value of the investment behind it.
Its a different set of billboards.
In nature, this set of billboards is essentially different from that set four years ago.
1. The main body of raising cards is different.
These are all large insurance companies, while four years ago, small and medium-sized insurance companies were the main ones.
2. Different ways of raising cards.
Large-scale insurance companies mainly use the relatively stable way of agreement transfer and participation in fixed increase. Before, small and medium-sized insurance companies often used the mode of competitive bidding in the secondary market, which had a greater impact on the fluctuation of stock prices of listed companies, and also brought negative public opinion to the insurance industry.
3. Different motives and purposes.
This set of billboards is medium and long-term financial investment, belonging to value investment; while in the allocation, some small and medium-sized insurance companies intend to control the latter through billboarding listed companies.
4. Different attributes of funds.
Most of the funds allocated to small and medium-sized insurance companies come from insurance products, and mainly from short and medium-term insurance products. This kind of product is characterized by short debt period and high cost. Once it reaches the stage of product payment, it is easy to affect the holding of assets.
And the fund sources of large insurance companies are more diversified, including their own funds, insurance liability reserve and insurance product account funds. Moreover, the characteristics of these insurance products are longer debt duration and lower cost, the corresponding asset allocation will be more stable, and the capital will not go in and out very much.
Why did the players change their sticks?
Market participants may be curious: Why did the main players of insurance funds change? Small and medium-sized insurance companies, especially those with private backgrounds, almost disappeared in the ranks of raising their cards.
This has nothing to do with the tone of the insurance industrys return to its original source in recent years. Looking back four years ago, many small and medium-sized insurance companies with private background launched a fierce scene of you compete for me on the billboard listed companies.
The reasons behind are more complex.
One of the main reasons is that these companies deviate from the source of insurance protection and adopt a radical business model at the liability side, which leads to more radical assets side. Fast-in and Fast-out business, excessive risk exposure and liquidity problems are exposed, which poses new challenges to the effective identification and control of risks in regulation.
However, with the strict control of short-term and medium-term insurance products at the liabilities end by the regulatory authorities, the insurance business of these small and medium-sized insurance companies has returned to safeguard and conservative in asset allocation, and the mismatch mode of short-term and long-term investment has been corrected.
Another important objective factor is that the temporary rescue policy of insurance funds launched in July 2015, a catalyst to promote small and medium-sized insurance companies to raise their brand one after another, was withdrawn in early 2017. Among them, the balance of insurance funds investing in single blue-chip stocks accounted for the upper limit of the supervision ratio of the companys total assets at the end of last quarter, from 10% to 5% during the bailout period. To a certain extent, this reduces the ability of small and medium-sized insurance companies to raise their cards.
Release investment signals
In fact, in the era of large-scale asset allocation, whether from the perspective of counter-cyclical allocation or equity investment, there are inherent inevitability and hard truth behind the billboard of insurance funds. It seems that there are inherent logical convergence among different investment targets: low valuation, high dividend, performance growth determination, liquidity. Good, relatively decentralized equity, etc.
As an investment manager of a large insurance company said, Right now, our love for quality stocks is the result of deep consideration, not a decision topat the head. We hold the purpose of long-term financial investment to raise the brand, and after raising the brand, we will not interfere in the daily operation of listed companies.
From the current point of view, whether through the way of raising or fixed increase, agreement transfer, etc., long-term equity investment, the internal logic of the large insurance companies to choose shares by raising their cards has subtle commonalities: PB is less than three times, dividend rate is not low (more than 3%), fundamentals are stable, and equity is relatively dispersed.
According to the latest information from the front line of the market, a number of large insurance companies are now ready to choose the appropriate signboards for their own financial characteristics.
However, it is worth mentioning that at present, there are not many high-quality varieties that meet the standard of large insurance companies. The relationship between supply and demand is in the situation of more monks and fewer porridges. And in these high-quality stocks, which listed companies will be among them? It is worth your close attention.
Source: Liable Editor of China Securities Network: Liu Song_NBJ9949