In recent times, the long – term investment reform pilot for insurance funds has been making waves in the financial market. Not only have new insurance – related private equity securities fund management companies completed the filing process, but new insurance – related private equity funds have also been initiated for establishment. Moreover, insurance companies are announcing plans to set up private equity securities fund companies. As of now, over 170 billion yuan of long – term insurance funds are on the verge of entering the market at an accelerated pace.
Since the launch of the pilot program in 2023, its scale has been on a continuous expansion spree. Once the approval for the third – batch 60 – billion – yuan investment is finalized, the total scale will skyrocket to 222 billion yuan. Currently, apart from the 50 – billion – yuan funds that have already been invested and are in operation, another 172 billion yuan of long – term insurance funds are in the preparatory stage before entering the market.
According to data from the China Securities Investment Fund Association (CSIF), on May 27th, the “Honghuo Fund Phase II” (a private equity securities investment fund) was established and completed its filing on May 28th. The fund manager is Guofeng Xinghua (Beijing) Private Fund Management Co., Ltd. (Guofeng Xinghua).
The Honghuo Zhixian (Shanghai) Private Securities Investment Fund (Honghuo Fund) is the first insurance – related private securities investment fund in China. Managed by Guofeng Xinghua, its first – phase scale reached 50 billion yuan. Both China Life Insurance and New China Life Insurance contributed 25 billion yuan each, and all investments for the first phase have been successfully completed.
The second – phase of Honghuo Fund has an establishment scale of 20 billion yuan. It is still jointly subscribed by Xinhua Insurance and China Life Insurance, with each company contributing 10 billion yuan. Its investment scope encompasses stocks of large A + H listed companies that meet specific criteria among the components of the CSI A500 index. These target companies are expected to have sound corporate governance, stable operations, relatively stable dividends, good stock liquidity, and be well – aligned with the long – term investment needs of insurance funds.
The reporter learned from China Life Asset Management Co., Ltd. that on April 9th, the company submitted an application to the National Financial Supervisory Administration, proposing to jointly initiate the establishment of the “Houhu Fund Phase III” with relevant institutions. The application was approved on May 13th. The “Houhu Fund Phase III” will invest in and hold stocks of large – cap blue – chip companies that feature good corporate governance, stable operations, relatively stable dividends, good stock liquidity, and high dividend returns. This move aims to further reduce the impact of short – term stock price fluctuations on the financial statements of insurance companies.
Other institutions that have been approved to participate in the insurance funds’ long – term investment pilot program are also speeding up the implementation of related work. For example, according to information from the China Fund Association, on May 26th, Tai’an Wenxing (Wuhan) Private Fund Management Co., Ltd. (Tai’an Wenxing) completed its registration and filing. Established on April 21st, it was initiated and set up by Tai’an Asset Management Co., Ltd. Tai’an Wenxing will take fundamental analysis as its starting point, select high – quality listed companies in both domestic and overseas markets, and strive for the stable growth of fund assets in the medium and long term under the premise of scientific and strict risk management.
On May 16th of last year, Sun Insurance Group announced that its board of directors had approved the plan for its subsidiary, Sun Asset Management, to establish a wholly – owned subsidiary as the fund manager. The fund manager will initiate the establishment of the Sun Hua Yuan Private Equity Securities Investment Fund. Another subsidiary, Sun Life Insurance, intends to invest 20 billion yuan in this fund, accounting for 100% of the fund’s issued shares.
Furthermore, the reporter learned from industry insiders that several insurance companies are applying to participate in the third – batch of the insurance funds’ long – term investment reform pilot program. Among them, some smaller institutions are hoping to get involved in the pilot by subscribing to the private equity fund shares initiated and established by large institutions.
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