Against the backdrop of the regulatory authorities’ continuous encouragement of long-term funds to enter the market, the establishment of private equity funds by insurance companies is experiencing a new upsurge.

On June 3rd, CPIC officially launched the CPIC Strategic Emerging M&A Fund and the Private Securities Investment Fund, with a total scale of 50 billion yuan for the two funds. In the just-passed May, several insurance companies including Ping An of China, PICC, Sunshine Insurance, Taikang Asset Management and China Italy Life Insurance successively established private equity funds and all expressed their commitment to adhering to the long-term and value investment concepts and actively supporting the development of the capital market.

Insurance funds have the characteristics of long terms and stable investment styles, and possess sufficient stability. They are an important force supporting the sustained and healthy development of the stock market. Zhou Jin, a partner of PWC China’s financial industry management consulting, told the China Times in an interview that increasing the inflow of insurance funds into the stock market is conducive to reducing stock market fluctuations, advocating the concept of value investment, and improving the functions of the capital market.

A wave of private equity insurance funds is on the rise

On June 4th, a reporter from the China Times learned from a relevant person in charge of CPIC that one of the two funds released by the company this time, the CPIC Strategic Emerging M&A Private Fund (provisional name, subject to the official filing name of the fund), has a target scale of 30 billion yuan, with an initial scale of 10 billion yuan.

This fund mainly focuses on key areas of the reform of Shanghai’s state-owned assets and enterprises and the construction of a modern industrial system, promoting the accelerated development of Shanghai’s strategic emerging industries and the strengthening and complementing of key industrial chains, and creating an innovative transformation ecosystem for Shanghai’s state-owned assets characterized by “long-term capital + merger and acquisition integration + resource synergy”.