Insurance Funds Eye Medical AI and New Energy Sectors for 2025 Investment Opportunities

Beijing, March 5, 2025 – Insurance companies are aggressively seeking investment opportunities in the capital market, with a keen interest in sectors such as medical and health, new energy, artificial intelligence, and high-end equipment manufacturing. Sence the beginning of 2025, over 100 insurance companies across the country have conducted intensive research on A-share listed companies. As of early March, these companies have collectively surveyed A-share listed companies nearly a thousand times, signaling a strategic shift towards these core tracks.The investment strategies of insurance funds, recognized as a vital source of medium- and long-term capital, are under close scrutiny as the market anticipates potential growth and policy impacts.

This surge in interest reflects a broader trend of institutional investors seeking higher returns in a low-interest rate environment. The potential for significant growth in emerging sectors like medical AI and new energy is notably attractive to insurance funds,which typically have long-term investment horizons.

Seeking Investment Opportunities in Emerging Sectors

As of March 4, 2025, a total of 123 insurance institutions have engaged in extensive surveys of A-share listed companies, totaling 804 surveys. This level of activity is consistent with the same period last year, indicating a sustained interest in identifying promising investment targets. Life insurance companies, backed by substantial premium income and stable funding, are leading the charge in these research efforts. Pension insurance companies, including Ping An Elderly Insurance, Changjiang Elderly Insurance, and China life Elderly Insurance, have been notably active, with each conducting more than 50 surveys. taiping Elderly Insurance is also closely following suit.

The active participation of pension insurance companies underscores the importance of equity market allocations for long-term asset growth. These companies manage significant funds aimed at providing retirement income, and strategic investments in high-potential sectors are crucial for meeting their obligations.

Wang Zhaojiang, executive director of Shenzhen Beishan Changcheng fund Investment Research Institute, notes the importance of pension allocations in the equity market. Pension insurance is the main force in residents’ asset allocation needs. In a low-interest surroundings, only by increasing the allocation of pensions to the equity market can pensions better increase the allocation rate and achieve asset return expectations.

Leading insurance companies are also signaling their investment intentions. Ping An of China stated that it will leverage the advantages of large-scale long-term funds, flexibly use a variety of thorough financial tools and investment strategies, and continue to increase investment in strategic emerging industries, advanced manufacturing, new infrastructure and value varieties. This statement underscores a commitment to expanding investments in key sectors driving China’s economic growth.

Key Sectors Attracting Insurance Fund Attention

Insurance fund research spans a diverse range of industries, including electronics, computers, pharmaceuticals and biology, machinery and equipment, non-ferrous metals, communications, light industry manufacturing, national defense and military industry, and environmental protection. The banking sector is also a significant area of focus for insurance funds.

This broad range of interests reflects the diverse nature of the Chinese economy and the potential for growth across various sectors. Insurance funds are seeking opportunities in both established industries and emerging fields,aiming to capitalize on long-term trends and technological advancements.

zhi Peiyuan, vice president of the investment Professional Committee of Listed Companies of the China Investment Association, highlights the strategic alignment of these investments. Insurance fund research involves many fields. from the perspective of the new energy field,it is indeed in line with the national energy change strategy and has broad progress prospects. Insurance funds are optimistic about their long-term growth potential; the high-end equipment manufacturing field has high technical content and strong competitiveness. Some companies have global leading advantages and can bring good returns to insurance funds. The banking sector has stable performance and high dividend yield, which is also an vital choice for insurance fund allocation.

Industry insiders attribute the rising enthusiasm for insurance fund research to several factors.Wang Zhaojiang suggests that the A-share market has entered a long-term bottom and is at the beginning of a new upward cycle, and this upward cycle may exceed the expectations of moast market participants; my country continues to make breakthroughs in self-reliant technological innovation, and core key areas such as robots, artificial intelligence, and chip manufacturing are gradually narrowing their distance with Western countries. These breakthroughs will produce great industrial synergy effects in the future, making my country’s productivity level and production efficiency ahead of other countries, and the export economy will greatly benefit in the future.

Increased Market Entry and Policy Support

The proactive research efforts of insurance funds reflect a broader optimism about the market’s prospects. The China Insurance Asset Management Industry Association’s first 2025 investor confidence survey reveals that 50% of insurance asset management institutions and 53.57% of insurance companies hold a relatively optimistic view of the A-share market in 2025. Moreover, 52.78% of insurance asset management institutions and 51.19% of insurance companies anticipate that the A-share market will fluctuate upward in 2025. The survey included responses from 120 insurance institutions, comprising 36 insurance asset management institutions and 84 insurance companies.

This positive sentiment is further bolstered by government policies aimed at encouraging greater investment in the A-share market. These policies are designed to provide long-term capital and support the growth of key industries.

The “Implementation Plan on Promoting the entering of Medium- and long-term Funds,” issued on January 22, 2025, aims to increase the investment scale and proportion of A-shares by large state-owned insurance companies. Wu Qing, chairman of the China Securities Regulatory Commission, has emphasized the goal of investing 30% of new premiums from large state-owned insurance companies into A-shares starting in 2025. This initiative is expected to inject tens of billions of yuan in long-term funds into the A-share market annually.

Zhi Peiyuan believes that the “implementation Plan” provides clear direction for insurance fund market entry. If large state-owned insurance companies implement as required, 30% of the new premiums will be used to invest in A-shares every year, which will bring considerable incremental funds and huge room for release.With the promotion of policies, other insurance companies may also follow up to further increase the scale and proportion of insurance funds entering the market.

As of the end of the fourth quarter of 2024, the total assets of insurance companies and insurance asset management companies reached 35.9 trillion yuan, a 13.9% increase from the beginning of the year. The balance of funds used by insurance companies was 33.26 trillion yuan.The financial investment return rate in 2024 was 3.43%, and the comprehensive investment return rate was 7.21%.

Navigating Opportunities and Challenges

Industry insiders believe that the economic recovery and the rapid development of emerging industries present significant equity market opportunities in 2025. Though, long-term insurance funds must prioritize security and select high-quality assets to ensure asset preservation and gratitude.

While the potential rewards are substantial, insurance funds must also be mindful of the risks involved in investing in emerging sectors. Careful due diligence and risk management are essential for ensuring long-term success.

zhi Peiyuan cautions that policies support the real economy and create a good environment for the equity market. Though,it is indeed necessary to pay attention to market valuation differentiation,fierce competition for high-quality assets,and it is more challenging for insurance funds to screen investment targets. even though the survey of insurance companies is not the same as buying, it reflects their positive attitude and is expected to explore opportunities in a

Insurance Giant’s 2025 Gamble: A Deep Dive into Medical AI and New Energy Investments

Is the flood of insurance capital into medical AI and new energy a short-term trend or the beginning of a seismic shift in global investment strategies?

senior Editor: Dr. Li Wei, welcome. your expertise in financial markets and emerging technologies makes you uniquely positioned to comment on the recent surge of insurance funding targeting medical AI and new energy sectors. This massive influx of capital seems unprecedented. What are your thoughts on this trend?

Dr.Li Wei: The shift in investment focus towards sectors like medical AI and new energy by insurance companies represents a crucial strategic realignment, and far from a fleeting trend. For years, these institutions relied on traditionally conservative strategies, limited by low-interest rate environments and the search for higher, risk-adjusted returns.Now, we’re witnessing a willingness to embrace higher-growth, albeit higher-risk, assets. This is driven by long-term investment horizons inherent in the insurance industry, making them ideally suited for participation in sectors promising substantial, long-term growth, such as the transformative potential of medical AI and the enduring need for lasting new energy solutions. This isn’t just about chasing immediate profits but about securing returns that will match long-term liabilities.

Senior Editor: The article mentions that over 100 insurance companies conducted nearly a thousand surveys of A-share listed companies. What does this intense level of due diligence tell us about the seriousness of their ambitions?

Dr. Li Wei: This volume of surveys demonstrates an unprecedented level of due diligence and the insurance sector’s commitment to strategic long-term investing. Instead of reacting impulsively to market fluctuations, these companies are methodically identifying and evaluating investment opportunities with a long-term perspective. This thorough approach substantially reduces indiscriminate investment, minimizing risks and maximizing the potential for strong growth in the sectors they are carefully targeting. This thorough vetting process signifies an understanding of the complexities involved in investing in relatively newer sectors.

Senior Editor: Manny traditionally established sectors seem to be getting less attention. Why is there such a strong preference for medical AI and new energy, specifically?

Dr. li Wei: Medical AI and new energy are converging on multiple levels, creating an irresistible investment opportunity. In the case of medical AI, it’s about the transformative potential in areas like diagnostics, drug discovery, and personalized medicine. New energy, on the other hand, addresses a global imperative – the need for sustainable and renewable energy sources. Both sectors stand to benefit enormously from technological advancements and supportive government policies. Investment in these areas promises potentially high returns while addressing pressing global challenges, aligning perfectly with long-term investor objectives. beyond the potential returns, these investments also carry a substantial social impact component, which is increasingly important for investors.

senior Editor: The article highlights the role of pension funds. How significant is their participation in this trend?

Dr. Li Wei: Pension funds play a critical role. Their long-term liabilities necessitate steady, long-term returns. Since pension plans manage extremely large sums of money earmarked for future retirement benefits, allocating significant portions to these growth sectors becomes a crucial strategy for preserving and increasing the value of those benefits.The increasing participation of pension funds in medical AI and new energy investments signals a fundamental shift in pension fund management strategies towards more active and higher-growth, though not necessarily higher-risk, assets.

Senior Editor: What are the key risks and opportunities that insurance funds face in these sectors?

Dr. Li Wei: Opportunities: Exponential technology growth, considerable government support, and the ability to address global challenges like climate change. Risks: Technological uncertainty, regulatory changes, and potential market volatility in relatively new sectors.It’s crucial for insurance funds to carefully balance these risks and opportunities through diligent due diligence, diversification, and robust risk management strategies.

Senior Editor: What advice would you give to other institutional investors considering similar strategies?

Dr. Li Wei: A phased approach is crucial. Start with a thorough understanding of both the technological landscape and the regulatory habitat.Diversify investments across multiple opportunities within these sectors. Focus on securing partnerships with companies demonstrating clear technological innovation, strong management teams, and sustainable business models. Continuous monitoring and adaptable strategies are key to success.

Senior Editor: Thank you, Dr. Li Wei. Your insights are invaluable. This discussion highlights the significant long-term implications of this investment trend and the need for careful navigation of both opportunities and challenges.

What are your thoughts on this changing landscape of investment in emerging technologies? Share your insights in the comments below!