BEIJING, Jan. 22 (Xinhua) -- Insurers are optimistic about China's A-share market this year and expect the A-share market to edge up amid fluctuations, reported Securities Daily citing results of a survey by Insurance Asset Management Association of China (IAMAC) Friday.
By far, insurance companies in China possessed in total 21 trillion yuan of capital for investment and alongside their investment in the capital market, their influence to the A-share market also increased steadily. By the end of September 2020, stockholdings by insurance firms in China's A-share market accounted for 3.44 percent of the aggregate A-share market capitalization.
The IAMAC survey showed that insurers prefer the stocks tracked by the CSI 300 Index and SSE 50 Index and intend to overbuy consumption stocks on the A-share market which they owned confidence in since 2019. The CSI 300 Index tracks the 300 largest and most liquid A-share stocks and the SSE 50 Index tracks the 50 largest and most liquid A-share stocks listed on Shanghai Stock Exchange (SSE).
Despite that many market players think the present A-share market valuation is relatively high, insurers generally reckons the A-share market valuation remains basically reasonable, according to the IAMAC survey.
In the past weeks of 2021 when market credit regulations turned stricter, valuation of A-share stocks is likely to contribute less to drawing more investors in and retreat in certain periods in the rest of this year, held Ping An Asset Management Co., Ltd.
However, recovering industrial product prices are bringing up industrial profits and A-share listed companies may reap 15 percent of profit growth this year, which will help the A-share market shift to a profitability-driven market from a valuation-driven one, according to Ping An Asset Management Co., Ltd. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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