The recent months have seen a surge in incremental policies aimed at revitalizing the capital market, leading to a warming trend where long-term investment funds, such as insurance, social security, and pension funds, are noticeably increasing their market engagement. As of the end of September, the total investment balance of the insurance industry amounted to a staggering 32.15 trillion yuan. This includes a combined stock and mutual fund investment balance from life and property insurance companies reaching over 4.11 trillion yuan, indicating a marked increase both compared to previous months and to the same period last year. Furthermore, social security funds debuted in 93 new stocks and increased holdings in 174 of them, resulting in a market value of approximately 459.9 billion yuan. Similarly, pension funds entered 45 new stocks and raised their stakes in 59 others, with a total market value nearing 33 billion yuan.

This upward trend is projected to continue as long-term investments are set to focus even more on technological innovation. Officials from the Financial Regulatory Bureau and the Social Security Fund Council have indicated intentions to leverage the advantages of long-term investment. They propose to refine investment mechanisms that encourage early, small, long-term investments in hard science and technology, thus better serving the development of a new type of productive force.

Turning to the specifics, the majority of insurance funds stem from life and property insurance firms. According to data disclosed by the Financial Regulatory Bureau, as of late September, these companies collectively managed roughly 31.08 trillion yuan in insurance funds, constituting about 96.7% of the industry’s entire investment balance. Industry experts informed that these companies predominantly access the capital market through direct equity investments and mutual funds.

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As of September 30, the investment balance for life insurance companies reached 28.94 trillion yuan, showcasing an impressive year-on-year growth of 14.93%. Notably, the equity investment balance amounted to 2.18 trillion yuan, marking a 17.24% increase year-on-year and a 12.37% increase from the previous quarter. This translated into an allocation of 7.55%, which is a positive shift, up 0.54 percentage points from the previous quarter. Mutual fund investments reached 1.57 trillion yuan, which is 4.32% higher than in the past year, making up 5.42% of the total.

Meanwhile, property insurance companies reported an investment balance of 2.14 trillion yuan, registering a year-on-year increase of 6.74%. The balance of mutual fund investments stood at 0.21 trillion yuan, a year-on-year rise of 18.11% and a quarter-on-quarter increase of 13.81%, while equity investments reached 0.15 trillion yuan, growing 14.89% from the previous year and constituting 7.05% of their total investments.

Since October, insurance funds have continued to fortify their positions in the stock market. Notably, five insurance firms have conducted six shareholdings in publicly listed companies. This year alone, there have been 16 shareholding actions from seven insurance firms across 15 different publicly traded companies, marking the highest activity in almost four years.

Insiders from China Life have characterized the recent swift rebound in the A-share market as a guarantee for a more stable bottom, affirming that it still possesses mid to long-term investment value. The introduction of various new capital market reform regulations is continuously enhancing the market ecology, which benefits the long-term return levels significantly.

The most recent figures from the Financial Regulatory Bureau highlight that as of September, life insurers recorded annualized financial investment returns at 3.04% and comprehensive investment returns at 7.30%, which are boosts of 0.11 and 3.98 percentage points respectively compared to last year. Meanwhile, comprehensive investment returns for property insurance firms rose to 5.47%, a significant increase of 2.26 percentage points.

Examining the activities of social security funds and pension funds reveals a similar trend toward increasing market presence. As a bellwether for investment direction, social security funds are expanding their long-term market strategies. The data shows social security funds featured as top ten circulating shareholders in 563 companies at the end of the third quarter, with a corresponding market value of 459.9 billion yuan. Within this period, they initiated positions in 93 new stocks and augmented their holdings in 174 existing ones.

Industry experts observe that in recent years, social security funds have shown a consistent preference for asset classes with dividend characteristics. The newest additions and increased holdings notably span sectors such as environmental protection, new energy, and pharmaceutical manufacturing, reflecting a proactive approach to China's economic structure adjustment.

A representative from the social security fund indicated that their long-term investment goals and extended performance assessment focus on capturing sustainable returns tied to national economic growth and the favorable evolution of the capital market amidst short-term fluctuations.

Pension funds are also marking a decisive entry into the market, currently being recognized among the top ten circulating shareholders in 225 companies, totaling a market value of 329.71 billion yuan. Within this framework, they have entered into 45 new stock positions and extended shares in 59 others.

Wujian Li, the deputy chairman of the social security fund council, recently expressed the ambition to enhance the scale and proportion of the entrusted investments for basic pension insurance funds. He emphasized the importance of boosting the overall return rates while further optimizing investment policies to relax limits. This will enable various pension funds to diversify risk while enhancing long-term investment returns.

Investigations stemming from the recently convened high-quality development symposium highlight the ongoing commitment to amplify support for technology innovation. In statements made by leaders within the Financial Regulatory Bureau, emphasis was placed on utilizing the advantages inherent in insurance funds to sustain national strategic investments while focusing intensively on key areas, including emerging industries, advanced manufacturing, and new infrastructure—all crucial for fostering new productive forces.

Industry insiders assert that nurturing new types of productive capacity often necessitates prolonged financial input, propelling technological research and industrial upgrades. Insurance funds are regarded as 'patience capital' within the market ecosystem. They can provide this necessary support through diverse schemes including debt plans, asset-backed plans, direct real estate investments, REITs, equity plans, and special funds, establishing a virtuous cycle among technology, industry, and finance.

In a recent fact-finding mission in Liaoning, Liu Wei, chairman of the social security fund council, reiterated the focus on supporting the real economy and investing in technological advancements. There is an ongoing effort to bolster capacities that facilitate innovation and the extraction of technology-based results while seizing investment opportunities inherent in national strategies, all while ensuring fund safety and value appreciation.

Complementarily, Ding Xuedong, the secretary of the social security fund council, revealed during a survey in Guangzhou that there is a commitment to fully mobilize long-term funding advantages. The aim is to design improved mechanisms that emphasize early-stage, smaller, and long-term investments emphasizing hard-tech sectors, ensuring that fund safety and value retention are achieved while effectively propelling technological innovation.