Insurance funds favor trust products. Over 100 insurance companies have investment trust balances exceeding 270 billion.

Insurance funds favor trust products. Over 100 insurance companies have investment trust balances exceeding 270 billion.
Original title: Insurance funds favor trust products more than stocks and funds. Over 100 insurance companies have investment trust balances of more than 270 billion yuan. On July 1, the General Office of the China Banking and Insurance Regulatory Commission issued the “Notice on Issues Concerning Insurance Fund Investment Collective Fund Trust(“Bank Insurance Regulatory Office issued[2019]No. 144)” (hereinafter referred to as the “Notice”), to further loosen the insurance investment trust products, this is also this year’s investment in insurance capital after the increase of equity investment from regulatory encouragementFurther expansion of the scope.  Then, what is the current proportion of insurance investment trust products in large asset allocation?What is the size of the insurance investment trust product?With the further loosening of insurance investment trust products, will it have some impact on listed insurance companies?  In response, a reporter from Securities Daily learned from the China Insurance Asset Management Association that as of the end of 2018, insurance company investment trusts accounted for 9% of total investment assets.1% (The size of the investment trust is 2762.4.3 billion), accounting for more than stocks and funds.In addition, 66% of insurance companies (about 124) have invested in trust products.  From the perspective of the impact on listed insurance companies, Huatai Securities’ statutory Shen Juan believes that listed insurance companies have strict standards for non-standard investment qualifications. The increase in the threshold of 杭州桑拿 release has little impact on listed insurance companies as a whole, but the trust qualification requirementsThe relaxation is conducive to the further expansion of the investment scope. In combination with the consideration of the increase in the upper limit of equity investment, insurance companies have more investment channels and increased freedom.  Trust products account for nearly half of all types of financial products. Among various types of financial products, insurance funds prefer investment trust products.  ”Securities Daily” reporter was informed that, as of the end of 2018, the proportion of large-capital asset allocation was: bonds accounted for 39%; various financial products (including trusts) accounted for 18.5%; deposits account for 12.3%; other investments account for 6.9%; unlisted equity accounts for 5.7%; 四川耍耍网 shares account for 5.8%; public funds account for 5.0%; overseas investment accounts for 4.6%; the proportion of real estate is 2.3%.  According to the data disclosed by members of the CBRC, as of the end of 2018, the balance of insurance fund utilization was 164,088.3.8 billion US dollars, calculated according to the above ratio, the balance of investment of insurance capital in various financial products was 30,356.3.5 billion yuan.Among them, insurance investment trust products accounted for 9.1%, the investment balance is 2762.4.3 billion yuan.  In other words, trust investment accounts for more than half of the investment in insurance products.In addition, the proportion of trust investments also exceeds stocks and public funds.This shows that the degree of preference of insurance capital for trust products.  From the number of insurance companies of investment trusts, as of the end of 2018, there were 91 domestic life insurance companies and 88 property insurance companies in China, for a total of 189.Based on the above 66% ratio, about 124 insurance companies have invested in trust products.  In fact, it is not uncommon for insurance capital to favor trust products with higher investment returns.In all types of financial products, the average return of trust products continued to exceed those of bank wealth management and funds.According to the latest monitoring data of Puyi Standards, in May 2019, the average return on bank wealth management was 4.11%, the average return of money fund products is 2.43%, while the average return on trust wealth management products is as high as 8.62%, much higher than other financial products.  Venture capital investment generally follows three principles: safety first, liquidity second, and profitability third.The trust investment also basically meets the asset attributes of the above-mentioned insurance capital.  From the perspective of the investment targets of trust products, in May 2019, 62 trust companies issued a total of 1,673 trust products, of which 1661 were collective trusts and 12 were single trusts.From the perspective of the investment of the issued products, the investment areas include the scale of the securities market, real estate, enterprises, basic industries, and financial institutions, and there has been no substantial change.  It is noteworthy that for the first time to loosen the insurance investment trust products, the “Notice” has relaxed a variety of information on insurance investment trusts.  For example, the “Notice” mentioned that the insurance company should select appropriate trust companies, improve the continuous assessment mechanism, and perform annual internal control audits.Additional conditions for participating in the trustee’s trust company: (1) With sound corporate governance, good market reputation and stable investment performance, the audited net assets at the end of last year did not exceed 3 billion yuan; (2) the company in the past yearAnd senior management personnel have not had any major criminal cases, and have not been subject to any major administrative lawsuits by the regulatory agency.  In this regard, Shen Juan, an expert of Huatai Securities, believes that according to data from the China Banking and Insurance Regulatory Commission, 17 trust companies received fines in 2018, and more than 40 trust companies have suffered excessive over the past three years.For trust companies, it has been loosened, expanding the cooperation space between insurance and trust.The pre-merger supervision considers raising the upper limit of the equity investment ratio from 30% to 40%. She believes that the expansion of the insurance company’s investment scope is the future direction of supervision, and giving risky choices is conducive to the optimization of asset allocation and the improvement of efficiency.  In addition, the “Notice” also requires that collective fund trusts whose underlying assets are non-standardized creditor’s rights assets should have an external credit rating, and the credit rating must not be lower than AA or equivalent to AA credits assessed by qualified domestic credit rating agenciesgrade.This requirement has been improved to a certain extent not less than the previous A-level standard.  According to data from China Insurance Board, the investment scale of insurance funds investing in AAA-level trust products has gradually increased, from 47% in 2013 to 83% in 2018, and high-quality products have occupied land.  On the basis of unbundling, higher requirements for credit insurance cooperation projects are put forward. On the road to seeking returns for insurance funds, controlling investment risks is always the first priority, which is also reflected in the aforementioned Notice.The “Notice” of the China Banking and Insurance Regulatory Commission has relaxed the qualifications for access to insurance investment collective funds trusts, and has also put forward higher quality requirements for projects cooperating with insurance companies.  The CBRC stated that the collective fund trust for insurance fund investment, the consolidation of basic assets with non-standard debt rights assets, unlisted equity assets and other assets approved by the CBRC, the investment direction is in line with national macro policies, industrial policies and regulatory policies.Insurance funds must not be invested in fund trusts whose basic assets belong to industries or industries that are prohibited by the state and regulatory authorities. Financing entities must promise that funds will not be used in industries or industries that are prohibited by the state and regulatory authorities.  The “Notice” also added the concentration requirements for insurance capital investment trusts: “Except for collective fund trusts with a credit rating of AAA, the investment amount of an insurance group (holding) company or insurance company investing in the same collective fund trust must not exceed that amount.The total paid-in trust size of the product is 50%. The total investment amount of the insurance fund (holding) company, insurance company and its related parties in the same collective fund trust shall not exceed 80% of the total paid-in trust size of the product.”The agency believes that insurance funds have always been in a forbidden pool for the investment of a single trust. In the past, there was no requirement for concentration, and the proportion of collective trusts was too high, which caused the actual product to be in the form of a channel.This adjustment further rules to avoid the practice of acting in the name of taking the initiative and accelerating the active management transformation of the trust.  From the perspective of the impact on listed insurers, Ping An of China, CPIC and Xinhua Insurance invested non-standard assets in 2018 that were basically AA or higher, of which AAA products accounted for 98% and 95 respectively.2% and 95.1%, Xinhua Insurance Trust Plan accounts for only about 30% of non-standard assets.On the whole, the upgrade of the rating door has little effect on listed insurance companies, but it is conducive to the industry’s investment to become more stable.