In the third quarter, stocks such as China State Construction, Shanghai Pudong Development Bank, China Yangtze Power, and Suzhou Bank were reduced by insurance funds, with reductions ranging from tens of millions to hundreds of millions of shares. Entering the third quarter of 2026, capital market styles shifted markedly, with technology-focused growth stocks undergoing significant corrections while dividend stocks such as bank shares rose against the trend. Under these circumstances, how insurance funds adjusted their positions became a focal point of market attention. Wind data shows that as of the end of the third quarter this year, insurance companies held heavy positions in a total of 637 listed companies, totaling 118.784 billion shares, an increase of over 220 million shares compared to the end of the previous quarter. Among them, stocks such as Huadian New Energy, Baosteel, Baotou Steel, and BOE Technology were significantly increased. Regarding the hardware equipment industry, which is dominated by technology stocks (Wind industry classification), overall insurance companies continued to add positions, rising from approximately 883 million shares at the end of the previous quarter to 1.407 billion shares by the end of September.

China State Construction was reduced, while insurance funds increased positions in hard tech in the third quarter. Entering the third quarter, the extreme one-sided upward trend in technology was broken, dividend stocks rose against the trend, and the capital market experienced volatile declines, significantly increasing the difficulty of capturing market opportunities. However, insurance funds still did not stop adding positions. After adding over 12.4 billion shares in the first half, in the third quarter, insurance companies held heavy positions of approximately 118.784 billion shares, adding over 220 million shares compared to the end of June this year. Regarding the flow of insurance funds, Wind data shows that in the third quarter, insurance funds increased positions in multiple stocks such as Huadian New Energy, Baosteel, Baotou Steel, and Bank of China, with increases exceeding 100 million shares each, most of which are typical dividend targets in the market. In addition, in the third quarter, BOE Technology became a new heavy position for China Life, with approximately 238 million shares held as of the end of the third quarter; TCL Technology became a new heavy position for New China Life, with approximately 126 million shares held as of the end of the third quarter. In the third quarter, stocks such as China State Construction, Shanghai Pudong Development Bank, China Yangtze Power, and Suzhou Bank were reduced by insurance funds, with reductions ranging from tens of millions to hundreds of millions of shares. Among them, China State Construction was the most reduced heavy position, with China Life reducing approximately 345 million shares. In terms of bank stocks, China Life reduced its position in Shanghai Pudong Development Bank, from approximately 825 million shares at the end of the first half to approximately 763 million shares at the end of the third quarter; Suzhou Bank was simultaneously reduced by China Life and Guomin Pension, with reductions of 6.6148 million shares and 38.1161 million shares respectively. Technology stocks underwent significant corrections in the third quarter, yet insurance companies continued to add positions. Wind data shows that in the hardware equipment industry, to which technology stocks belong, as of the end of the third quarter, insurance companies held approximately 1.407 billion shares in heavy positions, adding approximately 524 million shares compared to the end of the second quarter. Taking the CPO leading stocks "Yizhongtian" as an example, at the end of the second quarter this year, Eoptolink and Zhongji Innolight had not entered the ranks of insurance company heavy positions, but by the end of the third quarter, China Life simultaneously held heavy positions in Eoptolink and Zhongji Innolight, with holdings of 8.1153 million shares and 7.5982 million shares respectively. At the same time, China Life, on the basis of already holding 4.9478 million shares of T&S Communications at the end of the second quarter, further increased its holdings by 132,300 shares in the third quarter; meanwhile, T&S Communications also became a new heavy position for "China Life Insurance Company Limited - Dividends - Individual Dividends," with approximately 3.8348 million shares held as of the end of the third quarter. As of the end of the third quarter this year, the top ten stocks by number of insurance company heavy positions were Shanghai Pudong Development Bank, Minsheng Bank, Agricultural Bank of China, China Unicom, Beijing-Shanghai High-Speed Railway, Industrial Bank, Postal Savings Bank of China, Zheshang Bank, Huaxia Bank, and Industrial and Commercial Bank of China, with eight of the ten still being banks, reflecting the approach of insurance companies building a "safety cushion" for their investment portfolios.

Intensive research on Zhongji Innolight and Eoptolink, stock market volatility drags down insurance company profits. Entering the fourth quarter, capital market volatility increased. As of the close on November 6, since the start of the fourth quarter, the Shanghai Composite Index has fallen 5.02%, while the Shenzhen Component Index and ChiNext Index have fallen 13.28% and 21.37% respectively. Amid market adjustments, insurance funds conducted intensive research. Wind data shows that as of November 6, a total of 95 insurance institutions conducted 1,321 research sessions, among which Guoshou Pension, Taiping Pension, and Changjiang Pension each conducted over one hundred research sessions. Specifically, Zhongji Innolight and Eoptolink became the stocks with the highest attention from six insurance institutions each. Among them, Zhongji Innolight was sought after by Taiping Pension, Ping An Pension, China Pacific Insurance, Haigang Life, JD Allianz Property Insurance, and AIA Insurance, all of which participated in research on Zhongji Innolight on October 29 and November 3. Eoptolink received attention from China Taiping, Hengqin Life, Great Wall Life, New China Life, Huatai Insurance, and Dajia Insurance, all of which participated in research on Eoptolink on October 29. Wind data shows that as of the close on November 6, since the second half of the year, Zhongji Innolight and Eoptolink have fallen 64.67% and 71.65% respectively. After a round of declines in popular technology stocks, their investment value is drawing attention from insurance companies. With insurance funds continuing to add positions, insurance company profits have also adjusted with stock market fluctuations. In the first three quarters of this year, the net profits attributable to parent companies of China Pacific Insurance, Ping An, PICC, New China Life, and China Life decreased by 20.3%, 27.3%, 32%, 32.2%, and 46.7% year-on-year respectively, with capital market volatility being the main reason for the profit declines of listed insurance companies. A Huatai Securities research report stated that as of the end of the first half, the average allocation ratio of FVTPL (financial assets measured at fair value through profit or loss) stocks and funds for listed insurance companies had risen to a historical high of 13.0%. The relatively high trading-oriented equity exposure amplified gains during stock market upswings but also increased volatility during index corrections. Amid market adjustments, insurance funds rely on high-dividend assets to stabilize the portfolio foundation while using valuation digestion windows to continuously research technology targets and uncover opportunities in new quality productive forces. The relatively high trading-oriented equity exposure also means that insurance funds need to face the profit test brought by stock market fluctuations, seeking a new balance between pursuing long-term returns and controlling short-term performance volatility.