The Secret Maneuvering of Insurance Capital: From "Honghu" to Moore Threads
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In the past week, Moore Threads has become the “number one buzzword” in the A-share market.
Due to its strong position in the industry, many in the industry predict that Moore Threads may become the IPO with the single highest profit this year, and might even significantly break the annual record for IPO profits!
However, among the institutional allotment list for Moore Threads, there is an inconspicuous name that caught the attention of those familiar with the operation of long-term funds.
This institution, which has frequently stirred the A-share market in the past year, has revealed a rare capital clue via its position structure, quietly leading to the hottest new stock and potentially huge floating profits.
The clue itself is not obvious, but under the layers of nested capital structures, the revealed interface is highly intriguing.
Capital Chain in the Allotment List
Once Moore Threads’ strategic allotment list was made public, many professional investors immediately focused on this list.
The overall structure is unsurprising, including the investment company under the sponsoring broker CITIC Securities, the employee plan, national large-scale investment funds, local venture capital funds, and industry partners.
However, in this array composed of various institutions, there is a name that quietly appears in an unobtrusive position.
That is Tianyi Capital.
This institution’s intended maximum subscription amount is 200 million RMB, which is not huge, nor is its position prominent.
This venture private equity firm focuses on pre-IPO investment, venture capital, angel investment, etc., with entrusted funds exceeding 4 billion RMB, and is wholly owned by China Telecom, which itself is a core member of the central state-owned enterprise system.
Its appearance on the list seems unimpressive at first glance.
“Curved Linkage” of Honghu Fund
However, behind Tianyi Capital is a more noteworthy capital chain.
Tracing upwards from Tianyi Capital, within the main shareholder structure of China Telecom, there is a fund institution established less than two years ago.
As of the end of September 2025, among the top ten shareholders of China Telecom, “Guofeng Xinghua (Beijing) Private Equity Fund Management Co., Ltd.-Honghu Zhiyuan (Shanghai) Private Equity Investment Fund Co., Ltd.” ranks as the eighth largest shareholder.
This is the Honghu Fund currently attracting keen attention from A-share capital.
This is not an ordinary market-oriented private equity firm, but a long-term capital platform backed by China Life Insurance and New China Life Insurance, specialized in investing in the Chinese stock market. Although it was established not long ago, it already manages over 100 billion yuan.
From its background, Honghu Fund’s starting point is very high.
On one hand, it is naturally connected with two large listed insurance companies, and since it officially began operations in February 2024, it has been regarded as a stable long-term force in the market.
Most crucially: its public holdings are quite “restrained”, and it rarely appears on the list of top shareholders in listed companies, mostly concentrated in large blue chips such as China Telecom, Shaanxi Coal and Chemical, Yili Group, China Shenhua, PetroChina, Daqin Railway, with holdings tending toward long-term.
Bringing these pieces of information together, readers will naturally observe an objectively existing chain: Tianyi Capital participates in Moore Threads’ strategic allotment, its parent company is China Telecom, while Honghu Fund is one of China Telecom's core shareholders.
This structure itself does not have any particular orientation, nor any trading-level implication, but presents an observable link between various layers of industry and capital.
Additionally, “China Life Insurance Co., Ltd. - Traditional General Insurance Product - 005L-CT001-Hu” is a product that has long and steadily appeared on the top ten shareholders list of hundreds of listed companies.
The “New Coordinates” of Honghu Fund
According to public information, the investment scope of Honghu Fund has long been clearly stated. The two insurance company shareholders have previously disclosed:
“Investment scope: eligible large-cap A+H shares among the CSI A500 Index constituents. Target companies should have good corporate governance, sound operations, relatively stable dividends, better stock liquidity, and suit the long-term investment needs of insurance funds.”
This description has established the first layer of external understanding of Honghu Fund: it inherits the basic framework of insurance funds’ prudent investment.
But if you broaden the perspective, you’ll find that the real investment direction of the insurance fund system is not limited to high dividends and steady cash flow.
In its 2024 annual report, New China Life Insurance stated: “In 2024, in terms of equity investment, the company insists on serving the country's industrial upgrading, supporting the development of new productive forces, and actively deploying in fields such as integrated circuits, hard technology, and medical care.”
China Life also mentioned in its 2025 half-year report: “In terms of equity investment, steadily advancing the entry of medium and long-term capital into the market, actively deploying in fields related to new productive forces, and increasing allocation of high-quality high-dividend assets.”
These statements collectively sketch a richer background. The current round of medium and long-term insurance capital entering the market is not simply seeking assets with stable dividends, but is also searching for key directions in the next phase of industrial upgrading.
The so-called new productive forces generally include areas such as computing infrastructure, intelligent manufacturing, core technological breakthroughs, advanced hardware, and innovative drug development.
These industries themselves are quite volatile and do not fully align with the risk preferences of insurance companies for direct heavy allocation, but they are important sources of future long-term growth.
Therefore, in their public statements, insurance funds simultaneously mention assets with “high dividends” and the “deployment in new productive force sectors”, two concepts that seemingly diverge.
If these pieces of information are placed within the same coordinate system, you might see a more multidimensional side behind Honghu Fund.
Returning to Honghu Fund’s announced investment scope, the mentioned CSI A500 Index constituents themselves possess a certain growth tone. The A500 Index covers many industry-leading companies that are still in an upward phase, and the constituent companies have greater growth attributes and are more closely aligned with the direction of industrial upgrading compared to conventional large cap blue chips.
Externally, what is seen is merely that Honghu Fund currently holds large blue chips with high dividends, but the resource pool represented by the index itself is broader and more extensible than it appears.
Innovation and Ambition
Placing all the above information within the same framework reveals a relatively clear structure. As one of China Telecom’s main institutional shareholders, Honghu Fund bears the responsibility of prudent long-term capital from insurance funds, while China Telecom, via its investment platform Tianyi Capital, appears in the allotment list for emerging companies like Moore Threads.
This capital chain, from upstream large insurance funds to central SOE platform, and then to innovative companies, does not point to a specific strategy, but simply presents itself naturally in the capital structure.
Within this structure, China Telecom’s role is particularly critical.
It is a typical high-dividend central SOE with huge cash flow and predictable dividend capabilities, meeting the fundamental needs of prudent insurance fund allocations.
Yet at the same time, it is an important bearer of China’s technology infrastructure. The industrial map covered by China Telecom goes far beyond traditional communication business, with investment touchpoints scattered in computing power, hard tech, core components, industrial digitalization, and other fields—these areas are at the core of new productive forces.
Moore Threads is just one instance among these, providing an observable point along this chain, but not its entirety.
From this perspective, Honghu Fund’s allocation has both the prudent attributes of traditional insurance funds and, by leveraging China Telecom’s pivotal position, extends naturally to a broader industrial space.
This chain itself has no clear direction, but its existence provides outsiders with more dimensions through which to understand Honghu Fund.
Risk Warning and DisclaimerThe market comes with risks, investment requires caution. This article does not constitute personal investment advice, nor does it take into account users’ specific investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions herein are suitable for their particular situation. Investment based on this is at one’s own risk. ```