Yuan Xucheng disclosed that by the end of June this year, insurance funds had directly raised 4.58 trillion yuan for the real economy through equity investments such as stocks, direct equity, equity plans and equity investment funds. Among them, the total investment scale of insurance funds in A-share stocks is 2.08 trillion yuan, accounting for 4% of the circulating market value of a shares, and is one of the largest institutional investors in the stock market; the book balance of investment in science and technology innovation board stock is 6.741 billion yuan.
For the next step, Yuan said that it is necessary to continuously optimize the regulation of equity investment and constantly improve the quality and efficiency of insurance funds serving the real economy. Market oriented reform, serving the real economy, and maintaining a high pressure on violations of laws and regulations have become the three major directions for the next step of supervision on the use of insurance funds. The market will also see the release and collection of the investment supervision of insurance assets.
Equity investment of insurance assets provides 4.58 trillion capital for entities
Yuan Xucheng said that in recent years, the CIRC has continued to guide the insurance funds to make good use of equity investment tools, give full play to the advantages of long-term, large-scale and stable sources of insurance funds, and provide more diversified capital funds for the real economy. It has achieved positive results in broadening social financing channels, reducing social financing costs, and resolving difficulties and high financing costs.
In terms of supporting the high-quality development of the real economy, as of the end of June, insurance funds directly raised 4.58 trillion yuan for the real economy through equity investments such as stocks, direct equity, equity plans and equity investment funds.
Among them, the insurance asset management company has launched 63 equity plans with a total registered scale of 313.748 billion yuan; China Insurance Investment Fund has launched 22 fund, creditors rights and equity investment plans, with a total investment scale of 114.8 billion yuan.
One belt, one road, the Yangtze River economic belt, the Beijing Tianjin Hebei joint development, shantytowns, clean energy, pollution prevention and integrated circuit industry development, has formed a number of influential and demonstrative investment projects, and has effectively supported the national strategy. And peoples livelihood construction.
It has invested 2.08 trillion yuan in A-share stocks, with a market value of 6.7 billion yuan invested in the science and technology innovation board
Another function of insurance capital in equity investment is to play the role of institutional investors and maintain the healthy and stable capital market.
Yuan Xucheng said that for a long time, the CIRC has actively encouraged insurance funds to give full play to their own advantages, increase financial and strategic investment in high-quality listed companies, and support insurance funds to invest in the capital market through new share allotment, strategic additional issuance, floor trading and asset management products. Especially in recent years, when the capital market fluctuated sharply, the insurance fund has been kept in a state of net purchase, which has effectively maintained the stability of the capital market.
As of the end of June this year, the total investment scale of insurance funds in A-share stocks was 2.08 trillion yuan, accounting for about 4% of the circulating market value of a shares, and was one of the largest institutional investors in the stock market.
At the same time, the supervision actively supports the insurance asset management institutions to set up special products, participates in resolving the liquidity risk of stock pledge of listed companies, and provides policy support in the product investment scope and equity asset proportion, so as to promote the steady implementation of special products. At present, the registered scale of special products has reached 161 billion yuan, which strongly supports the relief work of listed companies.
The cbcirc has also strengthened the support of insurance funds as long-term equity funds, and allocated more insurance funds to key areas and weak links, focusing on serving major national strategies
1. We will support insurance funds to participate in the market-oriented debt to equity swap and reduce the leverage ratio of enterprises. At present, the total amount of insurance funds participating in the marketization of debt to equity swap exceeds 70 billion yuan, and the target enterprises involve coal, energy, shipbuilding, electric power and other industries.
2. We will support Chinas insurance investment fund to set up a second phase fund with a scale of 100 billion yuan to serve the development of advanced manufacturing industry and strategic emerging industries.
3. Encourage insurance funds to participate in the stock investment of science and technology innovation board to serve the development of science and technology innovation enterprises. By the end of June 2020, the book balance of insurance fund investment in Kechuang board stock was 6.741 billion yuan.
Annualized return on equity investment 13.16%
Yuan Xucheng is frank. From the long-term development point of view, serving the main insurance industry is the foundation and premise of the development of insurance fund utilization. As an important utilization channel of asset side, equity investment has the characteristics of long-term investment period, high average return and small cycle impact, which is more in line with the requirements of capital matching at the debt side, and strongly supports the development of the liability side in terms of income and structure.
In 2019, the original premium income of Chinas insurance industry will reach 4.26 trillion yuan, a year-on-year increase of 12.17%, nearly 9 percentage points higher than that of the same period in 2018. Accordingly, by the end of 2019, the investment income of insurance funds has reached 882.413 billion yuan, with an annualized comprehensive investment return rate of about 6.85%, including 279.013 billion yuan from equity investment and 13.16% annualized return on investment, which has become an important channel for insurance funds to improve investment returns and help insurance institutions to better balance safety, profitability and liquidity.
In the context of the growing scale of insurance assets, equity investment can effectively cover the cost of liabilities, providing strong support for insurance institutions to expand products with long-term risk management and protection functions, and to safeguard the legitimate rights and interests of insurance consumers. He said.
Set the next step of equity investment supervision direction
With regard to the equity investment of insurance assets, the CIRC continued to promote the market-oriented regulatory reform. On July 17, the CIRC issued the notice on issues related to the optimization of the allocation of equity assets of insurance companies. It introduced differentiated regulatory policies, set up multi file regulatory ratios for equity asset investment based on multiple monitoring indicators, and guided insurance companies to carry out value investment, long-term investment, prudent investment, etc Steady investment.
Yuan Xucheng said that we should continue to optimize the regulation of equity investment and constantly improve the quality and efficiency of insurance funds serving the real economy. In the next step, we should take the opportunity of the reform of the regulation of equity investment to carry out the supervision work more actively.
1. Give more decision-making power to the market and increase risk management tools for insurance assets
One of the directions of supervision is to continuously promote the market-oriented reform of the use of insurance funds. We will continue to deepen the market-oriented reform of the use of insurance funds, continue to expand investment fields, focus on improving supervision, and give more choices and investment decision-making power to market players.
Including, continuously enriches the insurance fund utilization risk management method. We will study and formulate insurance funds to invest in gold listed open-ended securities investment funds and their linked funds, and use more financial derivatives such as stock index futures, treasury bond futures, interest rate swaps, etc., to support insurance companies to increase hedging and risk management tools.
2. Guide insurance companies to participate in economic transformation and upgrading, and support equity and investment fund innovation
The second key direction of supervision is to continuously support and guide insurance funds to serve the real economy. Insurance companies should grasp the overall situation of serving the real economy, become the providers of infrastructure, major projects and other construction funds, and become the booster of the development of emerging industries.
Encourage insurance companies to invest in equity and support insurance companies to participate in economic transformation and upgrading, development of small and micro enterprises and other national strategies, key areas and livelihood projects. Support insurance companies to provide long-term stable and high-quality funds for the real industry through equity investment. Insurance companies are allowed to actively innovate in the use of funds, shorten the capital chain through direct equity investment, debt to equity swap, investment funds and other forms, so as to more efficiently connect high-quality assets.
In the next step, we will continue to strengthen the supervision of illegal equity investment. Insurance funds are public funds and should serve the main business and the real economy. Support does not mean relaxation; encouragement does not mean laissez faire. Equity investment must not become a tool to serve major shareholders, actual controllers or persons acting in concert, a variety of illegal investment and amplification of company risks, and a channel for individual institutions to engage in malpractice and profit transmission. Including: maintain a high pressure situation, continue to strengthen the supervision of insurance fund related transactions, and take punishment measures to limit the use form and proportion of insurance funds for all illegal acts. Establish a continuous dynamic evaluation mechanism of investment capacity, take timely supervision measures such as canceling or suspending a certain type of investment for companies that have violations of laws and regulations, have great risks, and do not meet the ability standards; urge insurance companies to carry out equity investment in accordance with the law and regulations, and shall not be nested in multiple layers, conceal and obscure the true direction of capital investment, cover up the real situation of risks, and shall not pass the drawer agreement u201dYin yang contract and other forms bypass the regulatory requirements. Source: securities companies China editor: Yang Qian_ NF4425
In the next step, we will continue to strengthen the supervision of illegal equity investment. Insurance funds are public funds and should serve the main business and the real economy. Support does not mean relaxation; encouragement does not mean laissez faire. Equity investment must not become a tool to serve major shareholders, actual controllers or persons acting in concert, a variety of illegal investment and amplification of company risks, and a channel for individual institutions to engage in malpractice and profit transmission.