BEIJING, Dec. 25 (Xinhua) -- Insurers in China are likely to upsize their equity investment by around 300 billion yuan alongside increases in premium incomes in the coming year, reported Xinhua Finance, a Xinhua-run financial information platform on Thursday.
The report cited opinions of analysts with Sun Life Everbright Asset Management Co., Ltd. as saying, highlighting insurance companies will still focus on fixed-income assets investment in 2021.
However, adjustment in the structure of their investment portfolio may occur, including their likely raising of the proportion of equity assets in their total assets in 2021.
Insurers are anticipated to actively participate in equity market investment, adding their investment in quality blue chip stocks on the Hong Kong stock market, purchase stock market-related fixed-income assets such as convertible bonds and appropriately adjust the industry composition of long-term equity investment to scale up their equity investment.
As market players held, part of the insurance firms in China may add their non-secondary market equity investment such as private placement, long-term equity investment, and financial equity investment in 2021.
In the first quarter of 2021, there may be relatively pleasant investment opportunities for equity asset given the relatively optimistic economic fundamental and unlikely change of monetary policy direction, noted market players.
Compared with A-shares, H-shares, more explicitly and directly affected by the European and U.S. monetary policy loosening, may post better performances given the relatively low valuation of part of quality listed stocks at present.
In the first half of 2021, analysts with Sun Life Everbright Asset Management Co., Ltd. believed that there will be sound investment chances on the A-share market and investors are advised to seize opportunities hidden in enterprises' profitability improvement, optimistic liquidity prospects and rising risk appetite to make bumper returns and achieve their annual targets. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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