Insurance capital's shareholding disclosures have reached a new high. Statistics show that such disclosures have occurred 31 times this year, surpassing the previous peak in 2020 and setting a record since disclosure records began in 2015.

Recently, PING AN Asset Management purchased 3.278 million H-shares of China Merchants Bank, increasing its stake to 18.04%. Given PING AN Asset's entrusted assets, the investment is likely backed by insurance capital. Analysts suggest that insurers' dividend strategy may have evolved from indiscriminate buying (Phase 1.0) to a more selective and balanced approach (Phase 2.0).

**Record-High Shareholding Disclosures** After excluding duplicate data from related parties and concerted actors, insurance capital has disclosed 31 shareholding increases this year, up over 50% year-on-year.

Regulations require insurers to disclose when their holdings—individually or jointly with related parties—reach 5% of a listed company's issued shares, with subsequent 5% increments also triggering disclosure. Some insurers also disclose H-share purchases at 5% thresholds.

Thirteen insurers have made such disclosures this year. PING AN Life Insurance, a subsidiary of PING AN, leads with 12 disclosures, followed by Great Wall Life Insurance with four. China Post Life Insurance recently disclosed a 5.17% stake in China Railway Signal & Communication H-shares, marking its third disclosure this year. New China Life Insurance and Rui Zhong Life Insurance each disclosed twice.

**Investment Methods and Sectors** Most disclosures involve secondary market purchases, though some include new share subscriptions, negotiated transfers, or passive triggers like share swaps.

Insurance capital remains active in equity investments. For example, Sunshine Life Insurance recently increased its stake in China Ruyi to 9.08%, while PING AN Life bought shares in Postal Savings Bank and China Merchants Bank, raising its stakes to 17% each. PING AN also acquired 40.574 million Agricultural Bank H-shares, lifting its stake to 20.06%.

**Key Industries and Strategies** This year, insurers disclosed stakes in 24 stocks, primarily in finance and utilities, with additional exposure to electrical equipment, IT, and healthcare. Low valuations and high dividends drive these investments. For instance, Agricultural Bank H-shares' dividend yield, though down from 5.95% to around 4.4%, still offers a spread over life insurance product rates.

PING AN adopts a concentrated approach, heavily investing in financial stocks like Postal Savings Bank, China Merchants Bank, and Agricultural Bank. Others, such as Great Wall Life, diversify across utilities and transportation sectors.

Large insurers like PING AN prioritize stable, high-dividend stocks capable of absorbing substantial capital, limiting their options compared to smaller firms. Overall, insurers favor long-term holdings but may adjust portfolios opportunistically.

**Dividend Strategy 2.0** With equity markets reaching new highs, insurers face challenges in dividend investing. Huatai Securities notes that while insurers allocated nearly RMB 320 billion to dividend stocks in H1 2025—exceeding 2024's total—valuation increases have narrowed opportunities. The dividend strategy is shifting from bulk buying to selective, balanced investments.

Insurers are advised to focus on high-quality companies with stable dividend growth potential as core holdings under FVOCI (Fair Value Through Other Comprehensive Income).

Amid low interest rates and policy support for long-term capital, insurers are expected to increase equity allocations. Adjusting product structures, particularly boosting floating-return products like participating insurance, is becoming an industry norm.

Participating insurance is projected to drive premium growth, offering flexible investment strategies. Coupled with new accounting standards, this trend may further boost insurers' demand for equity assets.