Honghu Zhiyuan, a 50 billion yuan private securities investment fund jointly funded by China Life and New China Insurance, has completed product registration and is ready to enter the market, according to a report by Shanghai Securities News.
The fund was established with 25 billion yuan investments each from China Life and New China Insurance, with a focus on investing in high-quality listed companies with large market capitalization and good liquidity. The fund will be managed by Guofeng Xinghua (Beijing) Private Equity Fund Management Co., Ltd., jointly established by Xinhua Asset and China Life Asset.
This initiative comes as part of measures to encourage long-term allocation funds, such as insurance funds, to enter the market. Honghu Fund is the first pilot fund for long-term stock investment reform of insurance funds, with a fund period of 10+N years.
People familiar with the matter believe that long-term investment strategies are more aligned with the long-term attributes of life insurance funds and can better meet the long-term value-added demands of insurance funds.
The establishment of Honghu Fund marks a significant step in the development of equity investments by institutional investors in China.