<div id="readability-page-1">Mainland China’s insurance companies have emerged as major cornerstone investors in Hong Kong initial public offerings (IPOs) as they seek higher returns and benefit from Beijing’s policy support for insurers to invest in equity markets. Ping An Insurance (Group), Taikang Life Insurance, New China Life Insurance, Dajia Life Insurance and China Post Life Insurance were among the key players that invested more than US$250 million across about 11 IPOs so far this year, according to UBS data. Their investment accelerated, reaching about 75 per cent of the US$333 million committed for the whole of last year. “We started to see more active participation of mainland insurers in 2026,” said John Lee Chen-kwok, vice-chairman and co-head of Asia coverage at UBS in Hong Kong. “They are overall driving up equity investment given the very low rate environment in mainland China.” The insurers mainly invested in new-economy stocks such as artificial intelligence, semiconductors, new energy and biotechnology, said Tom Chan Pak-lam, honorary president of the Institute of Securities Dealers. Chan said mainland insurers’ interest in Hong Kong IPOs was driven by regulatory changes, their pursuit of higher returns and strategic alignment. “The Chinese government has been actively pushing insurers to become ‘patient capital’ as they can invest [with a long-term outlook], which provides a stable funding source for the market,” he said.  Mainland insurance companies held total assets of 41.31 trillion yuan (US$6.1 trillion) at the end of last year, according to government statistics. As some of the largest institutional investors in the equity markets, they had been positioning for long-term commitments, typically spanning a decade or more. Beijing has rolled out a number of measures since early 2025, including relaxing capital requirements, to allow mainland insurers to invest between 30 and 40 per cent of their assets in stocks, up from 10 to 20 per cent previously, depending on their asset size. Some 20 securities firms, fund managers and insurance companies received 55 billion yuan in liquid assets in January last year from the People’s Bank of China through a swap facility that could be used as collateral for borrowing to buy stocks. “As interest rates have been falling in the past two years, traditional bond investments and bank deposits delivered lower returns, which prompted insurers to seek higher-return assets such as stock investments,” Chan said. The mainland insurers’ bets on certain IPOs have proved rewarding. Taikang Life Insurance and Sunshine Life Insurance were cornerstone investors in the IPO of Manycore Tech, a design software developer hailed as one of Hangzhou’s “Six Little Dragons”.  The two insurers invested a total of HK$181 million in Manycore, according to the company’s listing prospectus. Its shares jumped 172 per cent at the open on its trading debut in Hong Kong on Friday. “The increase in mainland insurance companies investing in Hong Kong IPOs and stock markets is due to the market rally in recent years that has brought good returns to insurers,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International. The benchmark Hang Seng Index rose 28 per cent last year, after jumping 18 per cent in 2024, following a 14 per cent fall in 2023. Ng said mainland insurers were long-term investors, so their participation in IPOs could help the companies maintain stable share prices while adding to overall market liquidity. Kenny Tang Sing-hing, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators, said mainland insurers were likely to continue investing in Hong Kong IPOs. Hong Kong Exchanges and Clearing’s (HKEX) main board retained its title as the world’s top IPO market in the first quarter, after reclaiming the spot last year for the first time since 2019. HKEX data pointed to a steady IPO pipeline, with 16 new and refiled applications received on March 31. The exchange has received 208 new filings this year, with 413 cases still under review. “The strong IPO performance of the Hong Kong market has provided investment opportunities for mainland insurance companies,” Tang said. “As the interest rate environment on the mainland remains low, the insurers cannot get good returns by investing in bank deposits. They will continue to invest in Hong Kong IPOs in future.” </div>

601336

601318

02318

PNGAY

01336

<p>Mainland China’s insurance companies are increasingly investing in Hong Kong IPOs, seeking higher returns amid supportive policies from Beijing. Key players like Ping An and Taikang Life have invested over US$250 million in 11 IPOs this year, significantly surpassing last year's total. The shift is driven by low interest rates in China, prompting insurers to seek better returns in equity markets. Regulatory changes have allowed insurers to invest a larger portion of their assets in stocks. The trend is expected to continue as Hong Kong remains a leading IPO market, providing attractive opportunities for these investors.</p>

Hong Kong IPOs lure mainland China insurers seeking higher returns