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The market structure of China's insurance industry is stable.
The market structure of China's insurance industry is stable.
Overall, the available funds of insurance companies maintained a growth trend; fixed-income instruments remained the main allocation direction for companies in the industry, while equity investment increased, and the proportion of low-yield assets such as bank deposits decreased. In 2025, with the continued growth of premium income, the available funds of insurance companies maintained growth. As of the end of 2025, the available funds of the insurance industry reached 38.48 trillion yuan, a year-on-year increase of 15.70%; among which, the available funds of life insurance companies accounted for 90.08%. In terms of investment asset allocation, in 2025, amid a gradual recovery in the capital market and a decline in the central level of market interest rates, insurance companies adhered to the principle of asset-liability matching, steadily carried out cross-cycle investment layouts, proactively optimized the structure of investment asset allocation, and increased the allocation of equity investments. The number of times insurance funds made "takeover bids" increased, mainly involving high-dividend industries such as banking, utilities, and energy. Simultaneously, regulatory authorities issued the "Notice on Adjusting the Regulatory Ratio of Equity Assets of Insurance Funds" and the "Notice on Matters Related to Major Equity Investments in Unlisted Companies by Insurance Funds," adjusting the upper limit of equity asset allocation ratios, guiding insurance funds to increase support for science and technology innovation enterprises, and encouraging insurance companies to leverage their long-term capital advantages to match the return requirements of long-term protection-type liabilities while adhering to the bottom line of risk control.
China Real Estate
China Real Estate
In the first quarter of 2026, the real estate market continued to show a clear differentiation. After the Spring Festival, driven by the release of demand, the housing market in core cities showed some recovery. The transaction volume of second-hand houses continued to be better than that of new houses. The Beijing and Shanghai markets took the lead in warming up. At the same time, high-quality plots in core cities could still be auctioned at high premiums, but the overall market was still in the bottoming-out stage. From the perspective of policy trends, the "Government Work Report" of the Two Sessions clearly stated that this year it is necessary to "focus on stabilizing the real estate market", and the "15th Five-Year Plan" further deployed "promoting the high-quality development of real estate", pointing out the direction for the medium and long-term development of the industry. Looking ahead to the second quarter, driven by the entry of "good houses" projects into the market and the traditional peak season, the transaction volume of new and second-hand houses in core cities is expected to be supported to a certain extent. Differentiation will still be the main feature of the real estate market this year.
Market supply and demand: According to the preliminary statistics of China Index Academy, in the first quarter of 2026, the overall sales area of new commercial housing in key cities continued to decline year-on-year. The transaction proportion of the area of more than 120 square meters in most representative cities continued to increase, and the new house market showed obvious improvement characteristics. Against the backdrop of reduced supply, the inventory of new houses available for sale declined slightly, and the clearing cycle was 24 months. Regarding the secondary housing market, the number of transactions in 20 key cities in the first quarter decreased by approximately 6% year-on-year, remaining generally stable. A mini-boom emerged in some core cities in March, with homeowners' listing expectations stabilizing. Supported by strong demand, Shanghai and Beijing saw increased transaction volumes despite a relatively high base. Shanghai's secondary housing transactions in March are expected to exceed 30,000 units, a new high for a single month in nearly five years, indicating a rebound in market activity.
Housing Prices: Since the beginning of the year, the secondary housing market has maintained a strategy of "trading volume for price," but the month-on-month decline in secondary residential prices in 100 cities has narrowed, ending the sharp drop in prices seen in the second half of last year. From January to February, secondary residential prices in 100 cities cumulatively fell by 1.39%. Meanwhile, driven by the supply of high-quality properties, new home prices in 100 cities cumulatively rose by 0.13% from January to February.
WHY WE CHOOSE IN CHINA
The essence of China's financial system is government-led and not affected by the fluctuations of a free economy.
The price of real estate in China is controlled by the government. Since the government's revenue comes from taxes on real estate transactions, it controls the housing market and does not allow prices to fall too low, especially in first-tier cities.
China's financial, insurance, and wealth management industries are relatively conservative in terms of market structure, and the macroeconomy is guided by the government.
Most importantly, sanctions imposed by Western countries will not have any impact on the Chinese market. Clients' assets will not be frozen in China, and our company can assist clients in transferring their assets at any time.
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