China Life(601628) 华尔街见闻·2025-04-21 11:41Core Insights - The report by China Life Asset Management Company addresses how to effectively invest as patient capital, highlighting the growing focus on insurance funds' long-term equity investments [1][2]. Group 1: Global Patient Capital Overview - As of the end of 2023, global patient capital reached a total asset size of 59.7 trillion, providing stable funding to capital markets [2]. - Insurance funds represent 32.5% of the total, with a size of $35.7 trillion, despite a decline from 2022 [2]. Group 2: Domestic Pension Investment Landscape - China's secondary market shows significant potential for expanding patient capital, with insurance companies' investment balance reaching 33.26 trillion yuan, and equity investments accounting for 21% [3]. - The basic pension fund's investment scale was 1.86 trillion yuan at the end of 2023, projected to grow to 2.3 trillion yuan in 2024, but the equity allocation remains significantly below international averages [3]. - The overall investment in stocks by insurance funds is 2.43 trillion yuan, representing 3.13% of the A-share market capitalization [3]. Group 3: Value of Patient Capital - Patient capital provides continuous funding support to enterprises, reducing market volatility through stable strategies and low turnover rates [4]. - It focuses on long-term returns, showing low sensitivity to market fluctuations and high risk tolerance [4]. - The investment philosophy emphasizes uncovering intrinsic asset value, prioritizing stable long-term returns over short-term price movements [4]. Group 4: Operational Logic of Patient Capital - The operational logic relies on stable liabilities from long-term institutional investors, ensuring continuous capital supply [6]. - It requires investors to have a value investment mindset and risk tolerance, supporting companies throughout their lifecycle [6]. - A diversified investment tool matrix is essential, utilizing various financial instruments to optimize resource allocation and promote sustainable economic development [6]. Group 5: Patient Capital Allocation Strategy - The strategy combines active and passive approaches to enhance investment returns and mitigate risks [7]. - Focus on high-dividend assets with stable fundamentals and clear business models, such as telecommunications and utilities [8]. - Attention to opportunities arising from technological and industrial revolutions, utilizing various investment vehicles [8]. - Consideration of index investment opportunities through Smart Beta indices and industry-themed ETFs to enhance long-term returns [8][9]. - Diversification into international markets through ETFs in U.S. and Hong Kong stocks, as well as commodities, to reduce the impact of single market volatility [9].