Huatai Securities: Insurance capital market entry scale may reach 900 billion by 2026

Huatai Securities Research Report states that by 2025, under market growth and policy support, the estimated new secondary equity investments, including stocks and funds (including bond funds), may reach 1 trillion yuan, with the secondary equity allocation possibly reaching around 16.0%, becoming an important source of funds for the stock market. In 2026, the growth on the liability side is expected to remain strong, with the total new investable funds for insurance assets estimated at 3.1 trillion yuan, and new secondary equity investments potentially reaching 0.9 trillion yuan. Dividend stocks remain an important focus for insurance asset allocation, as on one hand, dividend cash income is increasingly important for insurance companies; on the other hand, after reaching historic high levels of equity allocation, insurance assets also need to reduce the volatility of equity assets themselves. Huatai Securities estimates that in 2026, new bond investments may reach 3.7 trillion yuan, a significant increase compared to the previous year, with asset-liability duration matching still being a key consideration for insurance asset allocation. Outside of stocks and bonds, non-standard assets, deposits, and alternative assets may continue to be reduced by insurance assets. (People’s Financial News)