Who are the top picks for insurance capital’s equity allocations—heavily positioned in bank stocks and adding more exposure to the new-quality productive forces sector?

As typical “patient capital,” the investment moves of insurance companies have long attracted considerable market attention. As A-share listed companies continue to disclose their 2025 annual reports, the latest information on the insurance companies’ top-heavy holdings has also been released. According to Wind data, as of April 2, based on the listed companies that have already disclosed their 2025 annual reports, there are a total of 254 A-share listed companies in which insurance companies hold heavy stakes; among them, banks are the industry with the largest number of shares held by insurance companies. In addition, industries such as transportation and communications have also drawn attention.

Industry insiders say that against the backdrop of an “asset shortage,” high-dividend stocks represented by bank shares combine stable payouts and valuation-repair potential, and therefore have become targets of heavy positions by insurance companies. Recently, executives from multiple listed insurance groups have publicly stated that they will continue to make prudent allocations to high-dividend, low-volatility dividend/quality assets.

Seeing Investment Peers Again

As a typical representative of high-dividend, high-distribution stocks, bank shares have long been key targets for insurance companies’ portfolios. Based on listed companies that have already disclosed their 2025 annual reports, as of the fourth quarter of 2025, among the individual stocks with heavy positions held by insurance companies, bank shares rank among the top.

Specifically, according to Wind data, as of April 2, after excluding China Ping An’s holdings in Ping An Bank and China Life Group’s holdings in China Life, among the top 10 stocks by market value held by insurance companies, 7 are bank stocks. They are China Merchants Bank, Agricultural Bank of China, Shanghai Pudong Development Bank, Industrial Bank, Huaxia Bank, China Minsheng Bank, and Postal Savings Bank of China. The other 3 are China Unicom, China Ping An, and China Telecom.

Why have bank stocks become insurance companies’ “top favorites”? New Finance expert Yu Fenghui said that insurance funds favor bank and communications stocks mainly due to the stability and high-dividend characteristics of these two categories of stocks. As a core part of the financial system, banks play an essential role in the economy; their profit models are mature and they have strong resilience to risks, providing investors with stable dividend returns. Meanwhile, under the broader backdrop of accelerated digital transformation, the communications industry has long-term growth potential.

It is worth noting that since last year, investments by insurance companies in peers have also become increasingly common. Previously, China Ping An conducted two rounds of share acquisitions in China Life’s H shares. Meanwhile, in China Ping An’s 2025 annual report, “China Life Insurance Company Limited — Traditional — Ordinary Insurance Products — 005L-CT001 Shanghai” entered China Ping An’s top ten shareholder list, ranking tenth, holding China Ping An’s A-share stake at 1.14%. Industry insiders bluntly said that insurance stocks are a typical high-yield/high-interest category of stocks, which also reflects that the long-term development prospects and investment value of leading insurance groups have been recognized by peers.

Focus on New Quality Productive Forces Sectors

In 2025, benefiting from strong performance on the investment side, many insurance companies achieved solid results. In 2026 and even throughout the entire “15th Five-Year Plan for the next five years” period, what areas will insurance funds focus on?

Judging from statements by various institutions, taking early positions in areas related to new quality productive forces is a consensus among leading insurance companies. “Equity investment is the decisive factor for stabilizing and improving investment performance. We will adhere to a steady and progressive approach, continue to pay attention to the allocation of high-dividend stocks, and at the same time focus on the growth opportunities embedded in the ‘Outline of the 15th Five-Year Plan’ for research into key industries and key sectors.” Cai Zhiwei, vice president of China Taiping Life Insurance Company (PICC), said regarding the direction of upcoming equity investment.

“For a long-cycle patient capital, the most important thing is to align with the direction of the country’s economic development.” Guo Xiaotao, Co-CEO of China Ping An, said at the company’s performance conference. The company’s investment logic is to seek certainty amid uncertainty. New quality productive forces are the certainty factor; vigorous development of infrastructure is the certainty factor; the overall development of the national economy is the certainty factor; high dividends, a strong financial country, are the certainty factor; and a healthy China is the certainty factor. These are all important directions for long-term asset allocation.

Liu Hui, vice president and chief investment officer of China Life, summarized three consideration directions for the company’s investment: first, ride the wave and firmly go long on Chinese assets to capture the era’s alpha from new quality productive forces. Second, act in response to the trends, adhere to long-termism, and plan strategically with an eye to the long run. The investments are centered around a clearly defined strategic asset allocation core, without deviating from the liability nature. Third, take advantage of the trend, conduct tactical adjustments and optimize strategies in a flexible and agile manner.

Behind the strategy, which sectors are expected to receive additional accumulation by insurance funds? Yu Fenghui predicts that quality enterprises in areas such as infrastructure construction, utilities (such as power and water), consumer goods (especially essential consumer goods), and pharmaceutical and healthcare may receive additional positions by insurance funds. Companies in these areas typically have stable cash flows and sustained profitability, and can provide relatively generous cash dividends, aligning with the investment philosophy of insurance funds that seeks steady returns. At the same time, with support from national policy direction, leading companies in these industries are more certain in their future development and are also more consistent with the investment strategy of insurance funds as “patient capital.”

Beijing Business Daily reporter Li Xiumei

(Editor: Qian Xiaorui)

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