● By Xue Jin, Our Reporter
Recent data from the China Insurance Association reveals that New China Life Insurance increased its holdings in AVIC Industry Holdings Limited (H-shares) via centralized bidding on the secondary market, reaching the threshold for mandatory disclosure. An analysis of insurance capital "marking" cases this year by China Securities Journal shows a notable decline compared to the same period last year. Industry experts note that despite this drop, insurers have not reduced their allocation to equity assets; instead, they are diversifying through multiple instruments, channels, and strategies to strengthen equity exposure. In primary markets, insurance capital is deploying more patient funds to accelerate investment in long-term value-driven sectors.
Insurance giants take stakes in tech stocks
According to the disclosure announcement issued by New China Life Insurance Company of China regarding its shareholding in AVIC Engineering (HK) stock, prior to this change in equity holdings, New China Life held 3.04 billion shares of AVIC Engineering (HK), accounting for approximately 4.89% of the company's total H-share capital.
New China Life Insurance increased its holdings of 2 million tradable H shares (without lock-up restrictions) in AVIC Industry Holdings through centralized bidding on the secondary market on 9/22, representing approximately 0.27% of the company's total issued H share capital. Following this change, New China Life Insurance holds a total of 3.21 billion H shares in AVIC Industry Holdings, accounting for approximately 5.17% of the company's total H share capital.
New China Life Insurance stated that the funds for this stake acquisition came from insurance liability reserves and that its investment in AVIC Industry will be classified under equity asset management. As of the end of the first half of this year, New China Life had total assets of 1.96 trillion yuan, net assets of 1235.78 billion yuan, a comprehensive solvency adequacy ratio of 195.74%, and book balances of equity assets totaling 4402.75 billion yuan.
Holdings cool down, equity investments heat up
This year, insurance capital has announced shareholding at 8 times, a significant decrease compared to the same period last year. Does this reduction in shareholdings indicate a cooling of equity investments? Industry experts say no. In fact, insurance capital is continuing to increase its equity allocation.
According to the latest data from the National Financial Regulatory Administration, as of the end of the second quarter of 2026, China's insurance fund assets under management surpassed 40 trillion yuan for the first time. Investments in stocks and securities investment funds reached 6.4 trillion yuan, an increase of 0.7 trillion yuan from the beginning of the year. The allocation to stocks stood at 10.41%, marking the fifth consecutive quarter of sequential growth.
We continue to strengthen the core of our robust asset allocation. Our key initiative is deepening research and deployment of dividend value strategies, focusing on high-quality assets with stable operations, strong cash flows, consistent dividends, and reasonable valuations to build a moderately diversified equity portfolio. A senior executive at a leading insurance asset management firm in Shanghai told reporters that such assets provide stable cash flow and defensive resilience, while compounding long-term returns through dividend reinvestment.
The executive also emphasized diversifying strategies: deepening structural opportunities in technology sectors tied to AI and semiconductor cycles; dynamically allocating globally priced resources like energy and non-ferrous metals; and increasing investments in areas such as energy storage. By coordinating these diversified approaches, the firm aims to capture excess returns across different sectors while managing portfolio volatility.
Increase investment in the primary market
Beyond secondary market stock investments, insurance capital has diversified its equity investment channels and increased focus on the primary market. By leveraging private equity funds, S funds, and IPO strategic placements, it aims to capture value from corporate growth.
Industry research reveals that many insurance capital institutions have optimized their investment and research systems along the value chain, enhanced their capabilities to invest in "new quality productive forces," and made forward-looking moves in strategic sectors. They are identifying high-quality companies with long-term growth potential by analyzing industry development space, market competition dynamics, core technologies, and valuation levels.
Recently, New China Life Insurance partnered with CITIC Goldstone and other institutions to establish the Goldstone Technology Innovation Industry Investment Fund in Hubei, with a total scale of 20 billion yuan. China Life Insurance plans to contribute up to 45 billion yuan to set up Qingdao Chengxin Zhida Equity Investment Center (Limited Partnership), with a total scale not exceeding 60 billion yuan, focusing on equity investments in high-quality unlisted companies in the artificial intelligence and semiconductor sectors.
"We have indirectly invested in a portfolio of well-known tech innovation enterprises," an executive at an insurance asset management firm told reporters. The investments span strategic emerging sectors including advanced manufacturing, healthcare and biotechnology, next-generation information technology, new materials, new energy and green environmental protection, and new consumption—putting into practice the wisdom of insurance capital's "long slope, thick snow" investment philosophy.
