Orient Securities: Increased manufacturing and technology allocation, increased diversification of insurers' heavy holdings
The Zhitong Finance App learned that Orient Securities released a research report saying that the stock and fund allocation ratios of six of the seven major listed insurers at the end of 1H26 increased compared to the end of 2025. The market value of insurers' heavy stock holdings reached a record high, and bank capital concentration was high. In terms of number of shares held, Utilities/Steel/Electronics increased by 9.9/5.5/510 million shares compared to 1H26, respectively. The valuation distribution of insurers' heavy stock holdings has moved upward, and the holding structure has extended to sectors such as technological growth.
Orient Securities's main views are as follows:
The equity market style changed markedly, the equity allocation ratio of major insurers increased, and the share of FVOCI shares continued to grow
The 1H26 GEM index rose 35.6%. Technological growth rebounded markedly in the second half of the year, with banking, coal and other industries being relatively dominant. The share and fund allocation ratio of six of the seven major listed insurers at the end of 1H26 increased compared to the end of 2025, and the increase of Xinhua Insurance reached 4.4 pcts. The stock account structure continues to lean towards FVOCI, and China Ping An/Sunshine Insurance's FVOCI shares account for 65.8%/65.1% of stock investment, respectively.
The market value of insurers' heavy stock holdings reached a record high, and the concentration of bank funds was high
At the end of 3Q26, the market value of insurers' A-share heavy tradable stock positions reached 1,689.27 billion yuan, up 8.7% from the end of 1H26, a record high since 2022; the number of shares held increased 2.1% to 110.67 billion shares, a slower increase from the second quarter. In the industry statistics sample after excluding designated related positions, the market value of bank holdings was 353.47 billion yuan, accounting for 41.6%; the number of mechanical equipment holdings topped the list with 66 records, but the market value of positions was only 15.24 billion yuan. The difference between the breadth of industry holdings and capital size was obvious.
The manufacturing industry is active in increasing positions, and large additions and increases in holdings are focused on technological growth
3Q26 insurers added and increased their positions by 329, a decrease of 16 compared to 2Q26. The number of mechanical equipment/electronics items was 42, and basic chemicals were 30; the total number of stock reductions and withdrawals was 303, with power equipment at the top. In terms of number of shares held, Utilities/Steel/Electronics increased by 9.9/5.5/510 million shares compared to 1H26, respectively. The total amount of new and increased holdings corresponding to the top 20 targets in market capitalization was $52.05 billion, of which the total amount of electronics and communications was 21.91 billion yuan. Ningde Era, Zhongji Xuchuang, and Huadian Xinneng ranked first, and leaders in technological growth contributed a large amount of money.
The valuation center of heavy stocks rebounded slightly, and the share of high-dividend holdings records declined
The median PE-TTM for insurers' heavy holdings at the end of 3Q26 was 19.1 times, up 1.0 times from the end of 1H26, and the median dividend ratio rose slightly from 1.89% to 1.90%. The share of recorded positions with a dividend ratio of at least 5% fell from 17.5% to 12.4%, and the share of records with PE no higher than 20 times and a dividend ratio of not less than 3% fell from 35.9% to 33.8%. The valuation distribution of insurers' heavy stock holdings has moved upward, and the holding structure has extended to sectors such as technological growth.
Risk Alerts
The equity market fluctuated greatly; profits and dividends from high-dividend assets fell short of expectations; changes in long-term interest rates exceeded expectations; changes in policies to supervise the use of insurance funds and solvency; and there are disclosure restrictions on samples of heavily traded stocks.