On April 25, the Shanghai Composite Index fell below the 3,000-point mark, opened on April 26, and fell below 2,900 points again, and the market's worries resurfaced.

  As an important long-term investor and "ballast stone" in the capital market, what does insurance capital think of the future market?

Based on the opinions of many insurers, the possibility of short-term range fluctuations and consolidation of A shares is still high, but on the whole, the micro trading indicators of A shares have entered the cost-effective range, and they are optimistic about the allocation opportunities of high-end manufacturing, consumption upgrades and other themes in the long run.

Allocation value appears, medium and long-term optimism

  China Life Security believes that the recent market adjustment may be that asset prices are gradually taking into account the negative impact of the epidemic on economic growth including supply chains and industrial chains.

  "A shares are still uncertain in the short term, and there is a high possibility of range-bound consolidation. But in the medium and long term, we are still confident." An executive of an insurance asset management company told the First Financial Reporter.

  At the annual report conferences of listed insurance companies held not long ago, executives of listed insurance companies also expressed their optimism about the capital market in the medium and long term.

  Li Quan, CEO and President of New China Insurance, said at the results conference: "The market situation this year is very complicated, and it can be said that all investors are under pressure. But we are optimistic about the future.”

  Also expressing long-term optimism is China Pacific Insurance.

"From the perspective of CPIC, we think that the market adjustment brings more risk release and the appearance of long-term investment value. For long-term insurance funds, we see more opportunities, and we consider how to grasp them in a timely manner. ” said Fu Fan, president of China Pacific Insurance.

  Where does optimism come from?

Ping An Asset Management previously told Yicai: "China is the world's second largest economy, with a vast domestic demand market and strong manufacturing capabilities, showing sufficient vitality and development potential in all aspects. The central economic policy and the care of the capital market are the strong support for our long-term optimism about the development prospects of the A-share market."

  From the perspective of valuation, insurance capital investors generally believe that the current low valuation of A shares makes their allocation value appear.

Xing Yi, deputy general manager and chief investment officer of Taikang Assets, said in a recent interview with the media that from a historical perspective, the current valuation of A shares can be described as "cheap".

China Life Security also recently wrote an article saying that the valuation pressure of A-shares in the second quarter is generally controllable, risk appetite needs to be improved, micro-trading indicators have entered the cost-effective range, and equity assets as a whole have high allocation value.

  Xing Yi judges that at some point in the second quarter or the second half of the year, it is expected that the economy will stabilize, the growth rate of corporate profits will gradually pick up, and the improvement in performance will bring flexibility to the stock market.

By then, the key external variables will hopefully become clearer, and various factors will gradually turn to optimism, which will further boost market expectations.

  In fact, according to a survey of 100 asset managers by the Insurance Asset Management Association of China at the end of 2021, among the investment varieties this year, the domestic and overseas varieties most favored by 109 asset managers are A shares and Hong Kong shares, accounting for 73% of the total. % and 51%.

Which sectors are you optimistic about in the long run?

  In the medium and long term, which sectors are insurance capital optimistic about?

  China Life Security believes that it will continue to recommend investors to adopt a balanced allocation strategy in the short term. The allocation ideas revolve around valuation security and performance stability. In the short and medium term, it is biased towards defensiveness and valuation repair. Looking for sectors with low valuations and expectations of economic reversal, pay attention to Large financial and infrastructure real estate industry chain and other stable growth transaction opportunities, including banking, real estate and other industries.

  "In the first half of the second quarter, the policy of stabilizing growth has been exerted, and stocks with low valuation value represented by infrastructure real estate chains and big finance are expected to continue to dominate. If the policy is gradually implemented at the end of the second quarter and the economic data stabilizes, the market risk appetite will improve. , consumption and high-end manufacturing are expected to take over and lead the rise.” China Life Security said that it will still focus on high-end manufacturing and consumption upgrades for a long time, and is optimistic about configuration opportunities in new energy, military industry, communications, medicine and other industries.

  New energy, medicine, communication electronics and other sectors are also optimistic about Taikang Assets.

  Xing Yi said that my country is currently in a stage of increasing "steady growth" efforts. Therefore, sectors with steady growth and low valuations still have the ability to "steadily defend and counterattack".

"Technology and innovation have become the main theme of the irreversible era. We will continue to pay attention to the long-term growth track of 'double carbon + big health' and focus on obtaining medium and long-term excess investment returns." Xing Yi said that new energy, medicine, electronics, etc. In the sector, Taikang Assets are optimistic.

He believes that the innovation breakthroughs, localization substitution of Chinese enterprises, and the increase in the penetration rate of various new products have provided very broad development space for these enterprises.