With the release of the annual report for 2023 and the first quarterly report for 2024, the shareholding status of insurance capital in certain listed companies has become evident, as insurance capital is an important participant in the capital market. These institutions, characterized by their long-term capital investment, tend to seek long-term investment returns and higher dividend income to achieve their investment goals.
In the latest quarterly report, we can see that the number of shares held by insurance capital in several listed companies has increased. It is important to note that the annual and quarterly reports typically only disclose details of the top ten shareholders and shareholders of tradable shares, so the disclosed data may only represent part of the actual shares held by insurance capital.
According to the 2023 annual report data, multiple companies have experienced an increase in holdings by insurance capital or insurance capital products in the first quarter of 2024. For example, China Telecom’s first-quarter report revealed that by the end of the first quarter of 2024, China Life Insurance Company Limited-Traditional-General Insurance Products-005L-CT001 Shanghai’s shares in China Telecom increased from 767 million to about 865 million shares, with an increase of about 98.37 million shares.
Meanwhile, Guangdong Construction’s data for the same period showed that the shareholding of Great Wall Life Insurance Company Limited-Owned Funds increased from about 164 million shares at the end of 2023 to about 169 million shares at the end of the first quarter of 2024, an increase of approximately 4.8971 million shares.
Zhejiang Media’s first-quarter report for 2024 stated that the holdings of China Life Insurance Company Limited-Traditional-General Insurance Products-005L-CT001 Shanghai and China Life Insurance Company Limited-Dividend-Individual Dividend-005L-FH002 Shanghai increased to about 43.44 million shares and about 28.61 million shares respectively, an increase of 38.73 million shares and 21.03 million shares from the end of the previous year.
In addition to the companies mentioned above, according to the latest data, insurance capital or insurance capital products also significantly increased their holdings in the shares of companies such as Bank of Beijing, China Construction, Yili Group, and Chi Hong Zinc & Germanium during the first quarter of 2024.
Wind data further shows that some insurance capital or insurance capital products entered the list of top ten shareholders or tradable shareholders of certain listed companies for the first time in the first quarter of 2024. For instance, the recent quarterly report from Huadian International indicated that, by the end of the first quarter, Dajia Life Insurance Company Limited-Universal Products newly held about 61.5757 million shares, becoming its ninth-largest shareholder. This insurance capital product was not seen in Huadian International’s annual report prior to this.
Similarly, at China Merchants Energy Shipping, China Life Insurance Company Limited-Traditional-General Insurance Products-005L-CT001 Shanghai held about 48.8462 million shares by the end of the first quarter, ranking as the company’s seventh-largest shareholder.
In the most recent annual report for 2023 released by China Merchants Energy Shipping, those notable insurance products did not appear on the list of the top ten shareholders. By analyzing the stockholding situation of the insurance industry in this quarter, we can see that its investment targets are widely spread across many industry sectors. Prominent industries include electronics, machinery equipment, pharmaceutical biotechnology, basic chemicals, computers, electrical equipment, and autos, demonstrating the diversified characteristics of insurance companies’ investment portfolios.
Since insurance funds usually aim for long-term investments, they tend to seek stable, long-term returns. According to the latest data, as of the end of the first quarter of 2024, the number of stocks held by insurance funds with a market value exceeding 100 million reached several hundreds, including a significant number of stocks with a market value surpassing the 1 billion yuan mark. If we set aside investments by insurance groups in major listed insurance companies, we would find that at the end of the first quarter of this year, insurance funds’ holdings in companies such as China Merchants Bank, Yangtze Power, Shanghai Pudong Development Bank, Minsheng Bank, Hua Xia Bank, Industrial Bank, China Unicom, Kweichow Moutai, Postal Savings Bank of China, and China Telecom were at the forefront in terms of market value.
The preference for such companies is not coincidental; these stocks are often leading enterprises in sectors such as banking, electricity, telecommunications, and liquor. These companies generally have stable operations and offer high dividends, qualities that align with the concept of insurance funds pursuing both conservative investments and high dividend yields. Undoubtedly, the strategy of insurance funds is to share in the growth profits of listed companies while ensuring substantial dividend returns, thereby improving the overall investment revenue.
Insurance fundslisted companiesshare growthtop ten shareholderscirculating shareholdersstable operationhigh dividendsinvestment returns
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