Why did Taibao raise its brand of Jinjiang capital insurance twice? Why did it raise its brand of H shares five times a month?

category:Finance
 Why did Taibao raise its brand of Jinjiang capital insurance twice? Why did it raise its brand of H shares five times a month?


In addition to China Taibao, a few days ago, another insurance giant, China Life Insurance, just completed the H-share licensing of CGNPC (01816. HK). In fact, the recent market shock did not stop the pace of insurance capital licensing. First financial reporter statistics found that since the beginning of the year so far less than three months have been seven insurance companies licensing, including February so far in a month five licensing occurred in H shares.

This market fluctuation also provides a rare opportunity for long-term investors and value investors. On the premise of adhering to the traction of strategic asset allocation, we will also increase the flexibility of tactical asset allocation, grasp the opportunity of wrong killing brought by stock market adjustment in time, and make some long-term layout. Talking about the recent frequent licensing, fu fan, President of China Taibao, said at a performance conference held on March 24.

The low-key Taibao raised the brand three times this year

Chinas Taibao investment has always appeared in a low-key and cautious image. From the perspective of the licensing information disclosure of China Insurance Association, since the information disclosure is required in 2016, China Taiji has licensing behavior, until the end of 2019, the licensing of Shanghai Lingang (600848. SH) was increased by a fixed amount.

This year, Chinas Taibaos licensing campaign continued to accelerate. Since February, it has carried out three licensing actions, accounting for nearly half of this years insurance capital licensing.

Among them, Taibao life insurance raised its brand of Jinjiang capital twice at the end of February and March respectively, and at the end of February, it gathered a number of its insurance companies to participate in the licensing of Ganfeng lithium (01772. HK).

Industry insiders believe that it is not common for large insurance companies such as China Taibao to intensively raise their brands within one month, which indicates that insurance funds are willing to copy the bottom in the market.

Fu Fan responded to the recent intensive licensing at the above performance conference. He said that China Pacific always adheres to the concept of long-term investment, value investment and sound investment, and adheres to the asset allocation across the cycle. This market fluctuation also provides rare opportunities for long-term value investors. China Taibao will seize these opportunities and focus on the relevant stocks of national strategy, such as the integration of the Yangtze River Delta and the new zone of the free trade zone. There will be relatively concentrated investment around key regions and fields. From the end of last year to this years Taibao listed stocks, there are local state-owned stocks, as well as Ganfeng lithium industry, which has recently been popular new energy vehicle concept stocks.

However, fu fan also stressed that in addition to the increase of licensing in Shanghai near Hong Kong at the end of last year, all other activities were carried out in the H-share market. Due to the regulatory differences between the two markets, when the Hong Kong stock market reaches 5% of the H-share circulating shares, it is necessary to declare the rights and interests. At present, the so-called licensing shareholding ratio of China Taibao in Hong Kong is relatively low in the total share capital, compared with the A-share market There are some differences between cards.

H shares are favored by licensing

In addition to China Taibao, a few days ago, another insurance giant, China Life Insurance, just completed the H-share licensing of CGNPC.

In fact, the frequency of large-scale insurance capital licensing has increased significantly this year. According to the statistics of the first financial reporter, in less than three months from the beginning of the year to now, there have been seven cases of insurance capital licensing, involving four insurance companies.

The frequency of licensing is significantly faster than the previous two years. Since the strict supervision of universal insurance in 2016, the number of insurance capital licensing has been significantly reduced. Compared with more than 30 listed companies in 2015, the frequency of sweeping up of insurance capital in the capital market in 2017-2019 has significantly decreased, basically around 10 times. Compared with that, since the beginning of this year, the risk capital licensing has reached about 70% of the total in the previous three years.

Judging from the overall situation in recent years, the leading role of insurance capital licensing has changed from small and medium-sized insurance enterprises in 2014-2016 to large-scale insurance enterprises in recent years.

Compared with the licensing of small and medium-sized insurance enterprises in the asset driven liability model, the licensing of large-scale insurance enterprises is considered more cautious and rational by the market due to the lack of cash flow cashing pressure, which is a trend of licensing under the simultaneous development of regulatory incentives and endogenous demand matching with assets and liabilities.

Based on the opinions of insurance asset managers and analysts interviewed by first finance and economics, the logic behind the listing of large-scale insurance companies is different, including the consideration under the change of accounting standards, strategic coordination, rescue under the encouragement of supervision, and investment strategy in favor of undervalued High Dividend Stocks under the demand of long-term asset liability allocation. And this years licensing is particularly intensive is undoubtedly related to the market situation.

According to Chuancai securities, recently affected by the spread of the epidemic and the volatility of European and American stock markets, the Hong Kong economy itself is at the bottom stage, and the current valuation of Hong Kong stocks is still low.

From the point of view of the objects of the five H-share licensing of insurance assets, all of them are mainland companies, and they are basically individual shares listed in a + h. compared with A-share, these H-shares are obviously cheaper to be licensed. According to wind information data, the a share premium rate is quite high in terms of the share prices of three a + H shares of Agricultural Bank of China, CGNPC and Ganfeng lithium, which have recently been listed in the south. Based on the share price on March 23, the A-share premium rate of CGNPC and Ganfeng lithium is even as high as 108.67% and 93.15% respectively.

Data source: wind information

Insurance capital warehouse addition in progress

This years frequent licensing of large-scale insurance funds is also expected by the market. From the end of last year to the beginning of this year, many securities companies research papers generally believed that this year, insurance companies will continue to list high-quality companies.

In fact, from the annual report of listed insurance companies published at present, we can see that at the end of last year, major insurance companies began to increase their positions in stocks. For example, the annual report data of China Taibao shows that its allocation of equity investment assets at the end of last year increased by 3.2 percentage points to 15.7% compared with the end of 2018. Among them, the stock increased by 2.3 percentage points, which was the largest increase in all categories of assets, accounting for 6.4%. Ping Ans share also rose from 8.3% at the end of 2018 to 9.2% at the end of 2019.

Under the background of the decrease of non-standard asset yield and the increase of credit risk this year, the investment ability of insurance companys equity (stock + unlisted equity) is very important, which can effectively hedge the downward interest rate.

The executives of listed insurance companies also generally show their preference for equity asset allocation this year.

Chen Dexian, chief investment executive of Ping An, told first finance and economics that based on the current market situation, the bond yield is still going down, and the credit risk is increasing. Comparatively speaking, the attractiveness of stocks is better than that of bonds this year, and band operation has been carried out in the first quarter.

Fu fan also said at the performance conference that this years stock market has been affected by overseas markets, but A-share has been through deleveraging to control risk in the first two years, and all indicators are relatively healthy. We are full of confidence in the A-share market, and the adjustment of the stock market will also bring many opportunities for miscarriage. On the premise of adhering to the strategic asset allocation, we will also increase the flexibility of tactical asset allocation, timely grasp the opportunities for miscarriage and make some long-term layout.

According to the results of last months 100 person industry questionnaire of China Insurance Asset Management Association, equity assets will become the asset category most respondents are optimistic about in the next quarter, 29% of them are optimistic about a shares, 19% are optimistic about Hong Kong shares, and 11% of them choose convertible bonds with equity.

According to wind, as of March 24, 91 insurance companies have conducted 647 surveys on listed companies this year, a huge increase compared with 221 surveys conducted by 64 insurance companies in the same period last year.

A senior executive of a large insurance asset management company told first finance and economics that, as equity assets under regulatory criteria include preferred shares, unlisted shares, convertible bonds that trigger the conditions for conversion of shares and other varieties in addition to stocks and equity funds, some insurance companies have reached the upper limit of 30%, and the increase of investment proportion can undoubtedly make insurance investment more flexible and more competitive A few choices. According to Chuancai securities analysis, at this stage, A-share will still be under pressure due to the influence of global market. Considering the resilience of Chinas economy and the support of financial and monetary policies, combined with the relatively low valuation advantage of A-share, it is still optimistic about the allocation value of A-share in the medium and long term. In addition, Hong Kong stock market also has obvious valuation advantages, and there is still a good chance of rising in the medium and long term. However, we should pay attention to the irregular impact of global geopolitics and other risks on it. However, it also reminded that at this stage, when the epidemic and oil problems overlap, the global market risk and the uncertainty of economic outlook are still large, so investors should take a cautious attitude towards both the stock market and the commodity market. Source: First Financial Editor: Guo Chenqi, nbj9931

A senior executive of a large insurance asset management company told first finance and economics that, as equity assets under regulatory criteria include preferred shares, unlisted shares, convertible bonds that trigger the conditions for conversion of shares and other varieties in addition to stocks and equity funds, some insurance companies have reached the upper limit of 30%, and the increase of investment proportion can undoubtedly make insurance investment more flexible and more competitive A few choices.

According to Chuancai securities analysis, at this stage, A-share will still be under pressure due to the influence of global market. Considering the resilience of Chinas economy and the support of financial and monetary policies, combined with the relatively low valuation advantage of A-share, it is still optimistic about the allocation value of A-share in the medium and long term. In addition, Hong Kong stock market also has obvious valuation advantages, and there is still a good chance of rising in the medium and long term. However, we should pay attention to the irregular impact of global geopolitics and other risks on it. However, it also reminded that at this stage, when the epidemic and oil problems overlap, the global market risk and the uncertainty of economic outlook are still large, so investors should take a cautious attitude towards both the stock market and the commodity market.