As the year comes to a close, large insurance funds are taking action!
According to public information: On December 4th, NCI made a significant investment in Haitong Securities H shares, marking the first time this year and the first time in five years that insurance funds have invested in a listed brokerage.
Coincidentally.
On December 5th, insurance funds made new moves by targeting high-dividend Hong Kong stocks.
As representative institutions of long-term capital, why are insurance funds making high-profile moves at the end of the year?
<h2>NCI Takes Action!</h2>
According to NCI's official website, on November 28th, the company increased its holdings in Haitong Securities by purchasing 4 million unrestricted H shares through a centralized bidding process in the secondary market.
The shares acquired by NCI account for 0.12% of the total issued H shares of Haitong Securities, and the related transaction was completed through the Hong Kong Stock Connect. As of November 28th, NCI's book balance of Haitong Securities H shares was 1.065 billion yuan.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/9861128a-d519-40eb-8dab-6797111f3e24.jpeg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/9861128a-d519-40eb-8dab-6797111f3e24.jpeg"/>
(As shown in the above image) After this increase, NCI's holdings in Haitong Securities H shares rose to 171 million shares, approximately accounting for 5.02% of the listed company's H share capital, up from 4.90%.
Following the latest equity change, NCI has constituted a significant investment in Haitong Securities H shares.
It is noteworthy that the participant in this investment in Haitong Securities H shares is NCI Asset Management Co., Ltd., while the related party NCI Asset Management (Hong Kong) Co., Ltd. did not participate in this increase.
This indicates the source of funds for NCI's investment.
NCI continued its efforts, and after reaching the significant investment threshold, on December 3rd, it further purchased 8 million shares of Haitong Securities H shares, raising its latest holding ratio to 5.7192%.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6ced05b3-222a-451f-b6e0-7c9dd6dafe4c.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6ced05b3-222a-451f-b6e0-7c9dd6dafe4c.png"/>
According to Zhitang's analysis, this is NCI's third significant investment in a listed company in 2024, following its investments in China National Pharmaceutical Group and Shanghai Pharmaceuticals, and all three investments occurred within the past month.
<h2>First Time in Five Years for Insurance Funds to Invest in Brokerages</h2>
The last time an insurance institution made a significant investment in a listed brokerage dates back to April 2019, when China Life Insurance Group invested in Shenwan Hongyuan H shares.
In other words, NCI's investment in Haitong Securities is the first time in five years that insurance funds have &#34;set their sights&#34; on a brokerage.
According to statistics from the China Insurance Industry Association, there have been 16 cases of insurance funds making significant investments so far in 2024, involving industries such as healthcare, environmental protection, public utilities, power equipment, and banking.
Insurance funds are indeed moving swiftly.
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On December 5th, China Pacific Insurance disclosed its stake in China Cosco Shipping Energy H shares: as of November 29th, the insurance capital and its concerted parties held 5.04% of the H shares, corresponding to a book balance of approximately RMB 358 million.
The announcement also disclosed the sources of funds for this investment, involving the company's own funds and insurance liability reserves.
China Pacific Insurance previously acquired a stake in Huadian International Power H shares in August of this year

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- On December 4, Xinhua Insurance acquired 4 million H shares of Haitong Securities, marking the first instance of insurance capital investing in a listed brokerage in five years.  
- Following this, on December 5, insurance funds targeted high-dividend Hong Kong stocks, with Xinhua Insurance increasing its stake in Haitong Securities to 5.7192%.  
- This activity reflects a broader trend, as 16 cases of insurance capital acquisitions have occurred in 2024 across various sectors, indicating a renewed interest in equity investments by insurance firms.

The first stake in a brokerage in five years! Insurance funds "strike" at the end of the year