Orient Securities has released a research report stating that by the end of 1H26, six of the seven major listed insurers had increased their stock and fund allocation ratios compared with the end of 2025.
Insurers' heavy holdings reached a record high in market value, with bank positions showing a high concentration of capital. In terms of shareholdings, utilities, steel, and electronics increased by 9.9, 5.5, and 5.1 billion shares respectively compared with 1H26. The valuation distribution of insurers' heavy holdings shifted upward, and the holding structure extended toward sectors such as technology growth. The main views of Orient Securities Company Limited (600958) are as follows.
Equity market style clearly rotated, major insurers raised equity allocation ratios, and FVOCI stock share continued to grow
The ChiNext Index rose 35.6% in 1H26, while technology growth corrected notably in the second half of the year, and sectors such as banks and coal were relatively stronger. By the end of 1H26, six of the seven major listed insurers had increased their stock and fund allocation ratios compared with the end of 2025, with New China Life Insurance posting an increase of 4.4 percentage points. The stock account structure continued to tilt toward FVOCI, with the proportion of FVOCI stocks in stock investment reaching 65.8% for Ping An Insurance and 65.1% for Sunshine Insurance.
Insurers' heavy holdings hit a record high in market value, with bank capital concentration relatively high
By the end of 3Q26, the market value of insurers' A-share heavy holdings of tradable shares reached RMB 1,689.27 billion, up 8.7% from the end of 1H26 and a new high since 2022; the number of shares held rose 2.1% to 110.67 billion shares, with growth slowing compared with the second quarter. In the industry sample after excluding specified related-party holdings, bank holdings had a market value of RMB 353.47 billion, accounting for 41.6%; machinery equipment ranked first by number of holding records at 66, but its holding market value was only RMB 15.24 billion, showing an obvious difference between the breadth of industry holdings and the scale of capital.
Manufacturing was more active in adding positions, with large new and increased holdings concentrated in technology growth
In 3Q26, insurers had 329 new and increased positions, 16 fewer than in 2Q26, with machinery equipment and electronics both at 42 and basic chemicals at 30; reductions and exits totaled 303, with power equipment ranking first. In terms of shareholding volume, utilities, steel, and electronics increased by 9.9, 5.5, and 5.1 billion shares respectively compared with 1H26. The top 20 targets corresponding to new and increased holdings totaled RMB 52.05 billion, of which electronics and communications together accounted for RMB 21.91 billion, with CATL, Zhongji Innolight, and Huadian New Energy ranking at the top, while technology growth leaders contributed more large-scale allocations.
The valuation center of heavy holdings edged up, and the share of high-dividend holding records declined
At the end of 3Q26, the median PE-TTM of insurers' heavy holdings was 19.1 times, up 1.0 times from the end of 1H26, while the median dividend yield rose slightly to 1.90% from 1.89%. The proportion of holding records with a dividend yield of no less than 5% fell to 12.4% from 17.5%, and the proportion of records with a PE of no more than 20 times and a dividend yield of no less than 3% fell to 33.8% from 35.9%. The valuation distribution of insurers' heavy holdings shifted upward, and the holding structure extended toward sectors such as technology growth.
Risk warning
Large fluctuations in the equity market; earnings and dividends of high-dividend assets falling short of expectations; changes in long-end interest rates exceeding expectations; changes in regulatory policies on insurance fund utilization and solvency; and limitations in disclosure standards for the sample of heavily held tradable shares.