Encourage insurance to enter the market, investors will not
This week, the Bank of China Insurance Regulatory Commission released a news report on the official website of the media, clearly pointed out that "encourage insurance funds to increase the holdings of listed companies, broaden the scope of investment in special products, and maintain the stability of the capital market." From the perspective of policy guidance, there is no doubt that the funds of A shares are a big plus. However, if we encourage the introduction of insurance into the market, it is simply understood that there will be a trillions of funds queued into the market immediately, and even the subjective speculation will be completely wrong. In fact, the insurance has never left the A-shares. In addition to the secondary market, the Blue Ocean, which is in danger of entering the market, is also in product innovation, ensuring long-term stable and value-added funds is the fundamental goal of expanding the participation of A-shares.
The risk of entering the market has not been substantially loosened
More than two years ago, the insurance funds in the A-shares set off a wave of branding, "Baowan dispute" is vivid, some styles of radical risk As a result, the capital was also labeled as “barbarians” and “harmful people”, and even the responsible person was severely punished. At the beginning of 2017, the then China Insurance Regulatory Commission issued a notice to divide stock investment into three types: general stock investment, major stock investment and listed company acquisition. Except for the first type, the latter two need to be filed and ex ante. Approval. At the same time, the ratio of the single stock and equity assets of the insurance investment to the total assets of the company has also been stipulated accordingly. Under the multiple constraints, the phenomenon of levy of insurance funds has plummeted, and the impact on the trend of single stocks has been greatly weakened. It has basically become a financial investor that does not involve the management of listed companies.
It should be said that the regulatory measures at that time were very necessary and timely, avoiding the risk of excessive concentration of insurance funds and the possible changes in the management of listed companies. This week's statement of "encouraging insurance to increase holdings" did not involve the loosening of relevant measures. It only mentioned "accelerating the relevant filing and approval work", and the market could not reproduce the wave of insurance capitals at the end of 2016. What's more, the current investment stock limit is 30%, and the actual investment ratio of insurance funds is about 12.3%. As long as there is investment funds and willingness, it can be satisfied under the current norm. Therefore, “encourage overweight” is more about a policy orientation, rather than the arrival of substantial large-scale funds into the market.
Don't have enough policy space? Risks are cautious because of
Why is there no policy space for insurance? The volatility of the A-share market and the dividend payout rate are still important factors. In a violent shockIn the market, if the investment stocks and other weights are too large, it is easy to cause the ups and downs of the insurance company's profits. In order to ensure the stability of asset quality and the redemption of policies, it is also excusable to choose a lower investment ratio. This week, China Life Insurance (601628, Diagnostics) issued a performance pre-reduction announcement. The net profit in 2018 decreased by 50%-70% year-on-year. The main reason is that the impact of the overall shock of the equity market is down. A-shares are weak. It has a major impact on such large insurance companies as China Life Insurance, let alone other small-scale insurance companies.
On the other hand, with the opening of foreign investment channels such as “Shanghai-Hong Kong Stock Connect” and “Shenzhen-Hong Kong Stock Connect”, domestic insurance has more investment options, and the same listed company has lower valuation. H shares are more likely to attract the attention of insurance funds. For example, the “Ping An Insurance” insurance fund increased its holdings of ICBC (601398, Diagnostics) H shares 9 times in half a year, and the total shareholding ratio reached 11%; Huaxia Life Insurance also bought a large amount of money. Entered Minsheng Bank (600016, diagnostic stock) (600016) H shares. Therefore, A-shares should attract more attention and participation in insurance funds. The loosening of the existing investment ceiling is not the key. What is more important is to shape their own unique investment value, so that insurance funds can dare to increase investment ratio and dare to invest in long-term.
The bigger thing is that product innovation
In addition to direct investment in the secondary market, the bigger point of entry into the market is the innovation of products. Before the start of the bull market in 2005, many closed-end funds with large discounts were held by heavy insurance. As the market rose, the fund's net value growth and dividends accumulated, and the discount rate of the near-expiration date continued to converge and disappear. The capital has gained huge profits. Before and after the market fell to the top of the market in 2015, there were also a number of insurance companies among the top ten holders with obvious “squatting” in the stock index. They avoided the broader market and also achieved steady returns. Therefore, the entry of insurance into the market is sometimes “kungfu outside the stock”. It is not necessary to buy the secondary market stocks to realize the income. Some tools with good value investment characteristics are also an important way for insurance funds to participate in the stock market.
From the information revealed by the spokesperson of the Banking Insurance Regulatory Commission this week, it will be expected that the investment scope of future special products will be expanded. In the end of last year, in the liquidity risk of listed companies' stock pledges, a number of insurance companies have set up a series of special product accounts, with a cumulative scale of more than 86.0 billion yuan. Compared with the “icing on the cake” of investing in the blue-chip stocks in the secondary market, the special products that are bail-out can be described as “selling in the snow” and have obvious help to serve the real economy. For Buffett, the leader of global value investment, his source of investment funds is largely derived from insurance deposits, which are also a type of insurance. During the 2008 financial tsunami, he passed warrants. A variety of financial instruments, such as preferred stocks and convertible bonds, help some companies get out of the woods. The most typical example is Goldman Sachs, a well-known investment bank on Wall Street. At the height of the financial tsunami in September 2008, Buffett spent $5 billion to buy its preferred stock and obtained the corresponding warrants. This move helped Goldman Sachs out of the crisis and also made Buffett fully harvested.
Regardless of the way in which A shares are involved and ensure long-term stable and value-added funds, it is the fundamental goal of entering the market. Insurance can not be used as a “barbarians” to harvest leeks, nor will it be a “live Lei Feng” that is selflessly paid. It is a new round of incentives for the entry of insurance into the market through innovative products. ■