Guotai Haitong: In Q2 2026, insurance funds' allocation to equity funds reached a new high. It is recommended to pay attention to high-quality insurance stocks.

Guotai Haitong has published a research report stating that short-term trading factors are expected to impact the performance of insurance stocks, while the long-term valuation center will still be influenced by interest rates and asset-liability matching levels. It is anticipated that listed insurance companies will continue to optimize asset allocation, steadily increase their equity asset allocation, enhance comprehensive investment returns, and stabilize company profits and shareholder returns. The report is optimistic about the low valuation recovery and maintains an "overweight" rating for the industry. In Q2 2026, insurance funds allocated to stock funds reached a record high, and listed insurance companies are expected to continue optimizing asset allocation to drive profit improvement; trading factors remain the main cause of short-term stock price volatility, and it is recommended to pay attention to quality leading stocks with advantageous dividend yields. The main points from Guotai Haitong are as follows: Trading factors remain the primary cause of short-term stock price fluctuations, and it is advised to focus on high-quality leading stocks. From July 31 to August 14, the Shenwan Insurance Index (801194.SI) fell from 1218.35 to 1142.31, registering a decline of -6.24%. In the same period, the CSI 300 rose by +1.69%, the Shanghai Composite Index by +2.48%, and the Hang Seng Index by -2.97%. It is expected that trading factors such as capital preference will continue to be the main reasons for the price fluctuations of insurance stocks. There is optimism that leading insurance companies' steady allocation of equity assets will drive profit improvement and continue to optimize shareholder return policies; hence, attention should be given to quality leading stocks with advantageous dividend yields. In Q2 2026, insurance fund allocation to stock funds reached a record high, and the multi-layered pension security system continues to improve, benefiting the development space of the insurance industry. 1) The Ministry of Civil Affairs and the National Aging Office released the "2025 National Aging Development Report," indicating that China's multi-layered pension security system is accelerating its improvement, with the number of participants in basic pension insurance reaching 1.076 billion. 2) The National Financial Regulatory Administration disclosed the progress of insurance claims in response to recent major natural disasters. As of 12:00 P.M. on August 11, insurance institutions in five regions including Zhejiang, Shanghai, Jiangsu, Jiangxi, and Ningbo received nearly 100,000 claims related to Typhoon "White Dolphin," with estimated losses of 1.2 billion RMB. 3) Yushu Technology announced the offline allocation results for its Sci-Tech Innovation Board IPO, with 37 insurance institutions participating in the subscription with 2,617 effective bids, ultimately receiving 6.8297 million shares, totaling 1.030 billion RMB at a price of 150.80 RMB per share. 4) By the second quarter of 2026, the balance of insurance funds reached 40.8 trillion RMB, a 6.1% increase from the beginning of the year, with "stocks + funds" asset allocation reaching 6.39 trillion RMB, an increase of 0.8 percentage points from the start of the year. New China Life Insurance H and PICC Group H have received increased holdings from foreign institutions, PICC Life has plans to issue perpetual capital bonds, and Nuwa Technology has launched a new AI claims product "Lop Nur 2.0." 1) On July 27, JPMorgan increased its holdings in New China Life Insurance H, raising its stake to 5%. On August 5, Wellington increased its holdings in PICC Group H to 5.01%. 2) The Financial Regulatory Administration released approval information, granting PICC Life the public issuance of perpetual capital bonds not exceeding 10 billion RMB in the national interbank bond market. 3) The People's Insurance announced that Tan Jiong has been appointed as the executive director and chairman of the company's fifth board of directors. 4) The Securities Regulatory Commission disclosed the latest administrative approval progress, stating that Taiping Life's application for public fund distribution eligibility has been accepted. 5) Nuwa Technology has released the new AI claims product "Lop Nur 2.0," featuring a dynamic logic engine that streamlines the intelligent review process for the entire claims workflow. Risk warning: Improvement in liability costs may not meet expectations; the sustainability of customer insurance savings demand may not meet expectations; long-end interest rates may decline; equity market volatility.