● By Wu Yang, Staff Reporter
Trillion-dollar insurance giant China Life recently announced a technology innovation investment plan: it plans to contribute up to 45 billion yuan to establish the Qingdao Chengxin Zhida Equity Investment Center (Limited Partnership) with a total scale not exceeding 60 billion yuan, focusing on high-quality unlisted equity in artificial intelligence and semiconductor sectors. This is not an isolated case. Under the dual pressures of policy guidance and an asset shortage, the barbell-shaped allocation pattern of insurance capital is becoming increasingly prominent, with the importance of equity investments rising. More and more insurers are leveraging private equity funds to support tech-driven enterprises, matching long-term capital with the growth cycles of hard-tech industries.
China Life accelerates its innovation and technology investment layout
Specifically, China Life Insurance announced that the company, Wuxi Guoshou Chengda Equity Investment Center, and other investors will serve as limited partners. They plan to enter into a partnership agreement with the general partner, Guoshou Chengda (Shanghai) Health Medical Equity Investment Management Co., Ltd., to jointly establish Qingdao Chengxin Zhida Equity Investment Center (Limited Partnership).
The total committed capital of all partners in the partnership shall not exceed 60 billion yuan. Among them, China Life's committed capital contribution shall not exceed 45 billion yuan. Guoshou Equity Investment Co., Ltd. will serve as the general partner and manager of the partnership. The partnership will focus on investing in equity stakes of high-quality unlisted companies in the artificial intelligence and semiconductor sectors.
This marks China Life's latest move in tech startup equity investment this year. In 7, China Life announced its commitment of 49.99 billion yuan to participate in the Tianjin Shenghe Xincheng Equity Investment Fund Partnership, focusing on semiconductor companies. In 3, it committed 28 billion yuan to join Fujian Xinrui Jielie Tech Startup Equity Investment Partnership, with a total scale exceeding 40 billion yuan. In 1, it pledged 40 billion yuan to HuiZhi Yangtze River Delta (Shanghai) Private Equity Partnership, targeting artificial intelligence, integrated circuits, and biomedicine sectors.
Insurance companies enter the market, each leveraging their unique strengths.
China Life's aggressive moves reflect the insurance industry's strong confidence in hard tech sectors. Recently, New China Life invested 10 billion yuan to co-found the Jinshi (Hubei) Technology Innovation Industrial Investment Fund Partnership with CITIC Jinsuo Investment Co., Ltd. and others. National Pension Insurance and CCB Life partnered with provincial and municipal state-owned assets in Fujian Province to launch the Fujian Strategic Emerging Industries Pilot Equity Investment Fund, with an initial committed capital of 10 billion yuan targeting next-generation information technology, high-end manufacturing, new energy, and other strategic emerging industries.
From a longer-term perspective, leading insurers have developed systematic innovation and technology strategies: PICC has launched science and technology funds and modern industrial funds with a combined scale exceeding RMB 10 billion; Ping An partnered with the Shenzhen municipal government in 2024 to establish a RMB 10 billion major project fund covering cutting-edge fields such as robotics, semiconductors, and brain-computer interfaces; CPIC has consistently increased investments in tech innovation through equity investment funds and equity investment plans to position itself in hard technology.
Participation methods by insurance capital are becoming increasingly diverse: direct shareholding has declined, while routes such as investing through private equity funds, S funds, and strategic IPO placements have grown significantly. In the semiconductor sector, for example, during CXMT's IPO, six insurance capital entities—including China Life Investment, PICC Capital, and Hexie Health—committed a total of 23.85 billion yuan in registered capital prior to the company's listing. Additionally, China Life Asset Management launched an approximately 118 billion yuan "China Life-Hufa No.1 Equity Investment Plan" in 2023, acquiring shares from the Shanghai Integrated Circuit Industry Investment Fund via S份额, marking the first instance of an insurance equity investment plan trading S份额 on an exchange.
Deepen dumbbell-style configuration
Insurance capital is accelerating its entry into science and technology innovation, driven by both policy support and market forces.
On the policy front, since 2025, the National Financial Regulatory Administration has successively raised the upper limits on equity asset allocation ratios for certain tiers of insurers, increased concentration ratios for single venture capital funds, and reduced risk factors for long-held STAR Market stocks. This package of policies has significantly lowered the capital occupancy costs for insurance capital investing in hard tech.
In the asset portfolio, amid a declining interest rate environment and persistent scarcity of quality assets, equity investments are increasingly relied upon to boost returns. Zhang Xiaotong, Co-Chief Analyst at China Merchants Securities for Non-Banking Financials, stated that equity investments have become a key method for insurers to enhance earnings in a low-rate setting. In the first half of 2026, the total balance of insurance fund utilization maintained double-digit growth. As of the end of 6, the scale surpassed 40 trillion yuan for the first time. The barbell-shaped allocation characteristic of insurance capital became even more pronounced; driven by increased equity allocations and rising fair value of assets, the proportion of stock-related assets rose significantly.
Zhang Xiaotong believes that low interest rates, the shift toward participating insurance products, and regulatory policies are continuously reshaping the investment landscape for insurers. Sectors such as electronics, telecommunications, and biomedicine will help insurers capture excess returns from long-term corporate growth amid economic transformation. Insurers will also actively expand into alternative investment products and channels to strengthen diversified portfolio structures.
However, industry experts caution that private equity has weak liquidity, significant valuation volatility, and long exit cycles, demanding higher capabilities in investment research, post-investment management, and solvency oversight for insurers. Balancing support for technological innovation with a firm risk bottom line is key to the steady, long-term success of "long-term capital investing."
