China Insurance and Banks — Expert Call Takeaways: Chinese Insurance Capital and the Evolution of Equity Allocation

We hosted an expert call on 11 November focusing on the dynamics of China insurers asset allocation. The expert noted that, despite higher equity allocations than global peers, Chinese insurers continue to rely on equities to support asset returns amid low bond yields and relatively rigid legacy liability costs. Meanwhile, the implementation of SOE insurers 30% new-premium allocation target continues to support A-share investment. According to the expert, insurers generally view technology exposure as a long-term strategic allocation, despite the market volatility, subject to sufficient solvency headroom. Banks remain core OCI equity holdings, although concentration concerns are prompting insurers to expand the portfolios into consumer, energy and other sectors. Offshore allocation remains supplementary, as broader overseas investment faces constraints from quotas, hedging costs and investment capabilities. Implementation of the long-term capital participation in the equities market is