Continue to increase holdings! Ping An raises its stake in China Merchants Bank H-shares for the fourth time.

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In Ping An’s “pocket,” the weight of bank stocks is growing heavier and heavier.

On January 8, Ping An Life issued an announcement stating that the H shares of China Merchants Bank it invested in through Ping An Asset Management had reached the 20% holding threshold as of December 31, 2025.

This marks the fourth public disclosure of stake-raising in China Merchants Bank H shares by Ping An over the past year.

This move is not surprising. In the just-ended year of 2025, insurance funds sweeping up bank stocks has become the norm, and Ping An is undoubtedly the most aggressive among them.

As of the end of 2025, Ping An Life's book balance in China Merchants Bank H shares had reached 43.956 billion yuan.

From 5% to 20%, Ping An’s curve of increasing holdings has been resolute, with clear logic: in a long cycle of declining interest rates, insurance funds need an asset pool that is sufficiently large, sufficiently stable, and sufficiently “generous.”

China Merchants Bank happens to fit all these criteria.

In terms of performance, China Merchants Bank still firmly sits on the throne of “retail king.” Although the industry’s interest margins are generally under pressure, in the first half of 2025 it still achieved steady profit growth, maintained a high provision coverage ratio, and its asset quality stands out among peers.

Its core appeal perhaps lies in its dividends: in 2024, China Merchants Bank distributed a 2.00 yuan dividend per share, with the H share dividend yield remaining high over the long term.

For Ping An Life, which holds massive insurance liability reserves, compared with the volatile equity market and continually declining yields in the bond market, high dividend stocks like China Merchants Bank H shares—with their “dividend tax advantages”—are exceptional assets for long-duration matching.

Ping An itself is undergoing a “resilience test.”

As the stake raiser, Ping An Group’s net profit soared by nearly 50% in 2024, and operational profit grew by 3.7% in the first half of 2025. Although net profit fluctuates occasionally due to equity market volatility, the value of new business in life insurance continues to grow by double digits, providing a steady stream of “ammunition.”

From Ping An management’s perspective, the capital market is currently in a window period for insurance fund allocation. On the one hand, there are policy tailwinds as regulators encourage long-term capital inflows; on the other hand, bank stocks are still at relatively low valuation levels.

As “low volatility, high dividends” become market consensus, Ping An’s increased holdings in China Merchants Bank essentially represent insurance capital’s heavy bet on future predictable returns.

Whether this “heavy dividend” strategy can outperform in the next cycle not only concerns Ping An’s investment returns, but also serves as an important sample for observing trends in the era of large-scale asset management.

Risk notice and disclaimerThe market has risks; investment requires caution. This article does not constitute personal investment advice, nor does it take into account individual users’ special investment goals, financial situations, or needs. Users should consider whether the opinions, views, or conclusions in this article are suitable for their specific circumstances. Investing accordingly is your own responsibility. ```