New China Life stake in AviChina H shares hits disclosure line as insurer stake moves slow
In short
New China Life Insurance (新华保险) has increased its holding of AviChina (中航科工) H shares through centralised competitive bidding on the secondary market until it reached the stake-disclosure threshold, according to information recently disclosed by the Insurance Association of China. China Securities Journal reported that insurers have made noticeably fewer such stake disclosures this year than in the same period last year. Industry insiders told the paper insurers' equity allocation has not weakened but has become more diversified.
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New China Life Insurance (新华保险) has increased its holding of AviChina (中航科工) H shares through centralised competitive bidding on the secondary market, bringing its holding as a share of the company's H-share capital to the stake-disclosure threshold, according to information recently disclosed by the Insurance Association of China. The report, by China Securities Journal, was carried by CLS, 36Kr and Jiemian on October 9. [ 1 , 2 , 3 ]
Reviewing stake-disclosure cases by insurers this year, the reporter found that their number had fallen noticeably compared with the same period last year. Industry insiders said that insurers' allocation to equity assets has nonetheless not weakened, but has become more diversified, with insurers increasing equity allocation through multiple products, channels and strategies. In the primary market, insurance funds are using more patient capital and accelerating investment into areas with greater long-term value, the report said. [ 1 , 2 , 3 ]
Why it matters
The report indicates that Chinese insurance funds are spreading equity investment across more products, channels and strategies rather than relying on large stakes in listed companies. Industry insiders quoted in the report said insurers are also directing more patient capital into the primary market.
Key facts
- New China Life Insurance increased its holding of AviChina H shares through centralised competitive bidding on the secondary market. [ 1 , 2 , 3 ]
- Its holding as a share of AviChina's H-share capital reached the stake-disclosure threshold. [ 1 , 2 , 3 ]
- The information was recently disclosed by the Insurance Association of China. [ 1 , 2 , 3 ]
- A review of this year's cases found that insurers' stake disclosures fell noticeably compared with the same period last year, the reporter wrote. [ 1 , 2 , 3 ]
- Industry insiders said insurers' equity allocation has not weakened but has become more diversified across products, channels and strategies. [ 1 , 2 , 3 ]
- In the primary market, insurance funds are accelerating investment into areas with greater long-term value, according to the report. [ 1 , 2 , 3 ]
Confirmed by several sources
- Nothing is confirmed by two independent outlets yet.
Still unclear
- The exact size of New China Life's stake and the date and cost of the purchases. The reports do not give the percentage held, the number of shares or the dates of purchase.
- How many stake-disclosure cases insurers have made this year and last year. The reports say the number fell noticeably but give no figures.
- New China Life Insurance's holding of AviChina H shares reached the stake-disclosure threshold after purchases on the secondary market, per information disclosed by the Insurance Association of China. Reported by a single source so far
- The number of stake disclosures by insurers this year fell noticeably from the same period last year. Reported by a single source so far