CPIC launched a private equity fund of 20 billion yuan, upgrading the "influx of insurance capital into the market."

On June 3rd, China Pacific Insurance (CPIC) announced the launch of the Taibao Zhiyuan No. 1 Private Securities Investment Fund (tentative name, subject to the official registered name), with a target scale of 20 billion yuan.

Over the past year, several large listed insurance companies in China have successively established private funds, focusing on investments in China's secondary market.

Insurance capital has increased its investment in the A-share and H-share markets through an "alternative approach," becoming a new path beyond relying on premium product portfolios and self-owned capital investments.

At the same time, CPIC also announced the launch of the Taibao Zhanzheng New Merger and Acquisition Private Fund (tentative name, subject to the official registered name) with a target scale of 30 billion yuan and an initial scale of 10 billion yuan.

Target Scale of 20 Billion Yuan

CPIC pointed out that the launch of the Taibao Zhiyuan No. 1 Private Securities Investment Fund aims to respond to the national call to "expand the pilot reform of private securities investment funds established by insurance institutions" and actively practice long-termism, leveraging the advantages of patient capital.

Regarding investment strategies, the insurance company stated:

Improve the long-cycle equity asset allocation system, focus on core investment strategies of dividend value, and assist in the sustainable and healthy development of the capital market.

Insurance Capital Upgrades "Private Market Entry Tide"

Currently, from a policy perspective, more qualified insurance asset management companies and insurance companies are allowed to participate in the pilot investment of private securities investment funds.

In the past, the funds for insurance capital to establish private funds directed at the equity market and participate in secondary market investments came from insurance liability reserves, self-owned funds, and premium income products.

Since the launch of the above-mentioned pilot reform, several well-known insurance companies have established private securities funds.

In the first quarter of 2024, China Life Insurance and Xinhua Insurance jointly founded the Honghu Private Fund, with an initial scale of 50 billion yuan, targeting high-quality listed companies with large market capitalization, good liquidity, and high market influence. In May 2025, Xinhua Insurance and China Life collectively invested 20 billion yuan to subscribe to the second phase of Honghu. Currently, the Honghu private fund is advancing the landing of the third phase of funding.

Since 2025, Sunshine Life Insurance plans to invest 20 billion yuan in the Sunshine Heyuan Private Securities Investment Fund.

Taikang Life Insurance, as a single holder, intends to invest in the contract-type private securities investment fund directed issued by Taikang Stable Private Fund Management Co., Ltd., with an expected initial investment scale of 12 billion yuan.

Hengyi Holding will act as the fund manager to issue a contract-type private securities investment fund directed at Ping An Life Insurance, with an initial fund scale of 30 billion yuan.

In addition, regulatory authorities have also approved China Life Insurance and Taiping Life Insurance to enter the second batch of pilot lists for long-term investment by insurance capital.

In fact, in addition to large insurance companies continuously promoting the reform of insurance capital investment, small and medium-sized insurance companies are also joining in. Market news indicates that China Post Insurance and China Post Insurance Asset Management have been approved to participate in the pilot, with a scale of 10 billion yuan. Institutions such as Zhonghui Life Insurance and Agricultural Bank of China Life Insurance will also participate in this pilot reform.

As of the end of May, the scale of the pilot reform for long-term investment by insurance capital has exceeded 200 billion yuan.

Increased Willingness of Insurance Capital to Allocate Equity

Changjiang Securities research report points out: The decline in liability costs is favorable for insurance funds to increase their allocation to equity assets.

The research report further analyzes: On one hand, as liability costs decrease, the required return on risk assets will also decline, reducing the difficulty of equity allocation; on the other hand, under the new standards, allocating high-dividend equity assets through OCI accounts can reduce the volatility of insurance company profits and better achieve asset-liability matching.