CHENGDU, Dec. 26 (NBD) -- If the "Fight between Baoneng and Vanke" at the end of 2015 unveiled the rising of insurance funds on the secondary market, then the year 2016 witnessed their strong presence.
This year, due to rapid increase of insurance premium, "asset allocation shortage" and low interest rate, insurers with strong financial positions naturally drew broad attentions on the market. In response to "asset allocation shortage" and low interest rate, insurers take measures including buying shares of listed companies and investing overseas.
Despite some activist investors, most insurers make prudent investment.
Chen Dexian, the Chief Investment Officer of Ping An Insurance (Group) Company of China, had an exclusive interview with NBD. He shared his observations concerning insurance funds allocation strategy changes and funds application in 2016 and possible investment opportunities for insurance funds in the coming year.
Chen said, according to data released by China Insurance Regulatory Commission (CIRC), allocation of alternative assets like trust plan and real estate took a much higher proportion. Some insurers might choose to buy shares of listed companies on the secondary market.
He added, judging from the macroeconomic conditions home and abroad and current allocation trends, insurers are likely to keep their focus on allocation of equity assets and alternative assets in the coming year.