Latest statement from insurance funds: Taiping continues to increase holdings in technology, consumer, and new energy sectors; interim dividends moved up the agenda.
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On July 20, China Pacific Insurance (CPIC) issued the "Announcement on Firmly Supporting Capital Market Development and Enhancing Shareholder Returns", stating its strong confidence in China’s capital markets, its intention to continuously increase equity allocation, and clarified plans to prepare for interim profit distribution and optimize the frequency of dividends in 2026.
Regarding dividends, the announcement disclosed concrete figures that have already been implemented: The 2025 annual shareholders’ meeting decided to distribute annual cash dividends of 1.15 yuan per share (tax included), totaling about 11.063 billion yuan, a year-on-year increase of 6.5%.
The announcement highlights two main areas: First, CPIC will leverage the advantages of insurance funds to support capital market development.
The company stated that it will adhere to the concepts of "value investing, long-term investing, prudent investing, and responsible investing," confident in the long-term allocation value of China’s equity markets. Since the beginning of this year, it has increased its equity allocation proportion and will continue to invest in technology growth, consumer, new energy, and other sectors’ stocks and ETFs, aiming to be "truly patient market capital."
Second is the optimization of dividend policies and enhancement of shareholder returns, with a commitment to existing profit distribution policies and a focus on optimizing the dividend schedule in 2026, actively preparing for interim profit distribution.
CPIC’s dividend framework emphasizes "operating profit as the anchor, supplemented by dividend increases from positive investment contribution, while considering solvency constraints."
According to the 2025 annual shareholders’ meeting resolution, the Board of Directors has been authorized to decide on the 2026 interim profit distribution plan, in order to enhance the stability, sustainability, and predictability of dividends.
This announcement was issued amid a rapid correction in the A-share market in July.
According to Choice data, as of the close on July 17, both the ChiNext Index and the STAR Market Composite Index had fallen more than 20% in July. Against the backdrop of regulators guiding long-term funds to enter the market, insurance companies have generally increased their equity asset allocation ratios since last year. Taking CPIC as an example, by the end of 2025, its balance of investments in stocks and equity funds was nearly 410 billion yuan, accounting for 13.4%, a relatively high level.
In practical terms, the most significant measure in this announcement from CPIC is the shift of dividend timing from annual to interim, aligning with regulatory guidance encouraging listed companies to increase dividend frequency and enhance investor sense of gain.
However, it should be noted that "continuing to invest in technology growth and other sectors" is a continuation of existing investment directions, and the announcement did not specify exact amounts or schedules. Increased equity allocation also faces challenges from market volatility and a low interest rate environment. In the first quarter of 2026, CPIC’s net investment yield was 0.7% (non-annualized), and total investment yield was 0.8% (non-annualized), both remaining at low levels.
For CPIC, the final plan for interim dividends and the pace of equity allocation in 2026 remain to be observed upon subsequent implementation.
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