Insurance Funds Increase Allocation to CSI A50 ETFs, Market Attention Shifts
Author: He Kui
In recent news, insurance funds have been observed significantly increasing their subscriptions to equity assets allocated to the CSI A50 ETF, a move that has caught the market’s attention. Notably, both the Ping An CSI A50 ETF and Morgan CSI A50 ETF have completed their subscriptions, with insurance capital accounting for nearly half of the top 10 fund shareholders of these two ETFs.
For instance, among the top 10 fund shareholders of the Ping An CSI A50 ETF, four belong to the “Ping An Group”, with Ping An Life holding the highest proportion of fund shares at approximately 20.91%. Similarly, four companies including China Pacific Insurance Life Insurance and Guohua Life Insurance hold a total of approximately 7.76% of the shares of the Morgan CSI A50 ETF.
So, why are insurance funds showing a preference for the newly listed CSI A50 ETF? According to an equity investment manager at a small and medium-sized insurance asset management institution in Shenzhen, the CSI A50 Index, being a large-cap style index, selects listed companies from various industries that are among the best in terms of market value and profitability. ETFs primarily hold core assets, aligning with the need for stable and long-term allocation of insurance funds.
In the current volatile market environment, where core assets are undervalued, the A50 ETFs offer a strong anti-risk effect and are expected to be sought after by insurance funds. The net value proportions of the Ping An CSI A50 ETF and Morgan CSI A50 ETF reveal that industries such as manufacturing and finance hold a relatively high share.
Experts suggest that the deployment of CSI A50 ETF related products is a passive investment strategy for insurance funds to navigate uncertain times. As insurance funds lower their equity investments, incorporating broad-based index funds can help mitigate risks.
Looking ahead, Taikang Asset’s representative believes that the undervalued equity market will positively impact future stock market performance. With most industries currently undervalued, the relative cost-effectiveness advantage of equity assets stands out in major asset allocations. From a macro policy perspective, regulators’ recent focus on the market and efforts to maintain its stability through various initiatives indicate a strong commitment to bolstering the capital market.
With insurance funds showing increased interest in CSI A50 ETFs, the market is poised for further developments in the coming months.
(Editor: Xu Nannan)