Opinion: Xinhua Insurance and Chinese Life respectively invested 25 billion yuan to establish a private equity ** company has made new progress. With the official completion of the registration and filing of Guofeng Xinghua (Beijing) Private Equity Management, this private equity company jointly established by Xinhua Asset Management and China Life Asset Management will be officially launched, which also means that the pace of insurance capital entering the market is accelerating. At the same time, this event may have a certain demonstration effect, attracting more insurance funds to enter the market, bringing long-term incremental funds to the market, and promoting the healthy and stable development of the market.
According to a report by Brokerage China, the information disclosed by the China Investment Industry Association shows that on January 8, a private equity institution called "Guofeng Xinghua (Beijing) Private Equity Management" officially completed the registration and filing. The private placement was established on December 22, 2023, and was jointly established by Xinhua Asset Management and China Life Asset Management with a capital of 5 million yuan each. Previously, Chinese Life and Xinhua Insurance announced that they planned to jointly invest 25 billion yuan to jointly initiate the establishment of private placement ** investment *** Guofeng Xinghua private placement ** management *** to serve as the manager of the private placement ** company.
Previously, for the proposed private equity company, Xinhua Insurance had stated in the announcement that in order to further increase the long-term investment assets in line with the company's investment strategy, optimize the asset-liability matching of insurance funds, and improve the efficiency of capital use. Chinese Life said that the ** intends to invest in high-quality listed companies with good corporate governance and stable operation**, carry out investment operations in accordance with market-oriented principles, grasp the opportunity to build positions according to the market situation, and dynamically optimize the strategy. In fact, there are not a few insurance companies participating in the capital market, but there are not many private equity companies participating in equity investment. The insurance company jointly initiated the establishment of private placement**, which is a positive signal for insurance funds to directly participate in capital market investment, and it is also a manifestation of the results under the policy tilt and guidance.
It is worth noting that Chinese Life disclosed in the announcement that the investment pilot ** project is the "Huizhi Project". The duration of the pilot is 10+n years, and the initial filing period is 10 years, which can be extended by changing the filing method after the expiration of the 10-year period. This means that the operation will bring 10 years of "long money". As a result, with the efforts and promotion of management and regulators, the long-term incremental funds in the capital market may usher in an acceleration.
As we all know, the Politburo meeting on July 24, 2023 proposed to "activate the capital market and boost investor confidence". On August 18, 2023, the relevant person in charge of the China Securities Regulatory Commission introduced a package of policy measures when answering reporters' questions. Among them, a series of reform measures involving the investment, financing and trading sides have been accelerated, helping to improve the market investment and financing ecology, stimulating market vitality, and some of the implementation measures have gradually taken effect. In particular, the investment side that everyone is concerned about will bring more expectations and information to the market from the aspect of guiding long-term funds to enter the market and stabilizing the stability of the capital market. From the perspective of equity investment of insurance funds, the supervision has solved some of the blockages for the equity investment of insurance funds from the level of rules, improved the flexibility and absolute proportion of equity investment, and is expected to continue to optimize the corresponding regulatory rules in the future.
At the same time, China has steadily promoted the opening of the market and continuously introduced foreign funds. According to the report of the people, Vice Premier He Lifeng pointed out in Beijing on the evening of the 10th when meeting with members of the International Advisory Committee of the China Securities Regulatory Commission that the basic trend of China's economic recovery and long-term improvement has not changed, and China will continue to deepen the reform of the capital market and two-way opening, improve the convenience of cross-border investment and financing, and attract more foreign financial institutions and long-term capital to develop businesses in China. Prior to this, last year's first financial work conference proposed to "attract more foreign financial institutions and long-term capital to develop businesses in China". The China Securities Regulatory Commission (CSRC) continues to expand the institutional opening of the capital market and support qualified international financial institutions and investors to invest in China.
Therefore, behind the light-speed filing of the private equity company jointly established by Xinhua Asset Management and China Life Asset, it reflects the acceleration of the pace of insurance funds entering the market, indicating the increase in policy inclination. It is expected that with the guidance of the regulator and the help of policies, more insurance funds will accelerate the pace of entering the market. At the same time, with the prominence of the allocation value of the capital market, it will also attract more overseas institutions and long-term funds to enter, jointly bring long-term capital transfusion to the domestic capital market, lay the cornerstone for the long-term and stable development of China's capital market, and lay the foundation for the high-quality development of the market.