Investment Paths of Insurance Funds in Q4 Emerge: Dual Focus on Tech and Cyclical Sectors

The asset allocation strategy of insurance funds in the A-share market has always attracted significant attention. Many insurance fund investors stated that against the backdrop of continuous policy support, they hold an overall optimistic view of the equity market in the fourth quarter. Specifically, they will focus on two main themes: first, seeking new quality productive forces targets centered on technological innovation, and second, exploring valuation recovery opportunities in cyclical industries.

Dual Lines for Mining Gold in A-Shares

Looking ahead, many insurance fund investors believe that the trend of macroeconomic stabilization and improvement remains unchanged, and policy support continues unabated. The A-share market is expected to advance steadily and sustainably. It is anticipated that insurance funds will increase their allocation to equity assets, bringing more incremental funds to the market.

Regarding specific investment directions, several insurance fund investors mentioned being bullish on investment opportunities in the technology and growth sectors. A relevant person in charge from a small-to-medium-sized insurance asset management company stated that for the fourth quarter, they are optimistic about the growth potential of the AI industry, including investment opportunities in segments such as the domestic computing power industry chain and AI applications.

The head of equity investments at another small-to-medium-sized insurance asset management company said that looking forward, technology remains a major investment theme, and they will focus on investment opportunities in the信创 (IT application innovation) and localization sectors. Furthermore, in the fourth quarter, they will maintain a balanced allocation between the technology and cyclical sectors. Overall, cyclical industries like petrochemicals currently have low valuations, showing attractive investment value, and thus possess certain allocation merit.

The head of equity investments at a large insurance asset management company expressed that new quality productive forces represented by technological innovation will be a key investment focus for the company. Simultaneously, they will pay attention to investment opportunities in cyclical industries such as non-ferrous metals and oil & petrochemicals. From the supply side, "anti-involution" is expected to promote capacity optimization in cyclical industries. From the demand side, cyclical industries will benefit from economic growth. Currently, valuations in these sectors are at historically low levels, and with the gradual improvement in fundamentals, they are expected to see valuation recovery.