Change the criteria affecting the investment strategy Qianjiu to stay on top of large organizations

Category: Money tips Release Date: 2006-03-13

Affected by old and new accounting rules on stock investment in floating a different method of calculating the impact of profit insurance companies to reduce earnings volatility, it is possible to change the existing investment strategy, a few companies may choose to cash floating surplus during the year.

An insurance company concerned to reporters yesterday, revealed the above information. However, in some industry seems bullish momentum is not strong in the insurance companies realized. Moreover, the ever-increasing amount of investment in the stock market will quickly wash away a small number of floating-profit insurance companies to honor the impact of stock investment.

New guidelines that may affect the investment strategy of

According to China Insurance Regulatory Commission issued a notice last month, January 1, 2007, the insurance industry this year, implementation of the Ministry of Finance issued new business accounting standards. Since the new guidelines for the introduction of the concept of fair value, which may lead to greater volatility of the performance of insurance companies. In order to reduce the volatility of earnings, some insurance companies may change the current investment strategy.

Investment in an insurance company who told reporters that the current accounting standards, the equity investments are short-term investments, its earnings are not included in the profit float. In a bull market, insurance companies may not have all of the floating surplus cash, giving the future "to leave more surplus." But under the new standard, if the equity investment included in the trading assets, floating profit there would be no place to hide, "and this increases the difficulty of regulating profits."

Therefore, in order to smooth rate of return, some companies will be the original short-term investment assets to "available for sale financial assets", because this part of the assets of the floating surplus is not included in profits.

"Is not ruled out that some part of the company before the end of cut position." The above person said. Replacement of old and new accounting standards could lead to a large number of floating profit, while the surplus in 2006 of these floating profit can not be counted in 2007, only included in retained earnings at beginning of period in 2007, are charged directly to equity. "The business layer is equal to the contribution of a large number of profits in 2006 impossible to reflect, it may be part of the proceeds realized at the end of the year."

However, reporters found that, for insurance agencies to bring about market volatility lighten concerns may be redundant. On the one hand, what caliber statistics yield has not yet finalized. On the other hand, the insurance company will not only be adjusted in position due to accounting standards. An industry that: "They will assess the pros and cons. After throwing now have to buy it, but also the future purchase cost may be higher."

In addition, a large insurance asset management companies have told us that they had and commissioning parties, shareholders this matter of communication, the shareholders will not "ignore" their performance, management level and will not ship in order to ensure this year's performance rather. "The market has not got to the top, we have no reason to do so."

The proportion of 5% of the stock market break through the voices getting big

"We are stocks, funds over all configurations, and the company has been given permission to use feet, not wasting a penny." A major insurance asset management companies, who told reporters.

This year, the stock market continued to take the cattle, several large insurance companies could enter the market capital ratio increased gradually to 5%. CIRC executives have said that as the investment ratio of 5% did not use feet, not yet considered to continue to improve this ratio. The proportion of the major companies to invest in the future, as one after another to reach the ceiling, breaking the 5% is increasing.

Also, because the insurance institutions to invest more than the amount of total assets as the base end of the year, total assets increased funds will be correspondingly can enter the market. The total assets of the insurance industry late last year, about 1.5 trillion yuan, end of the year is expected to reach 2 trillion yuan, which release a further 25.0 billion the size of the market.

Next year's investment performance will be divided

"Next year is when the real test of the level of investment. Insurance company investment performance will appear split, stock selection and market timing are very important."

An insurance company are told reporters: "This year there are two insurance companies during the first half throwing a closed-end funds, if not to sell part of the profits this year would reach 20% -30%. The South in early Qiansan lighten up a company, 1000 4 again forever. another company in Sengo reduced, Qian Liu also added back. "Overall, levels of investment in the first half of the insurance companies fail to distinguish between high and low, broad based, the stock market, everyone is making money, you see who moves quickly to see who re-position. In the second half has begun over the level of investment ideas and stock picking.

Listed companies from the three quarterly terms, with China Life and Ping An Insurance Agency, led by blue chips Shigekura configuration. China Life Insurance are Sinopec, China Merchants Bank, China Minsheng Bank's largest shareholder and the circulation of the third-largest circulation of China Unicom's shareholders, Baosteel is the Ping An Insurance Awkwardness.

"At that time some people do not understand why we buy these 'popular goods', but our strategy is to buy, and then held fixed." One source told reporters China Life Insurance. Now look, it is these "seriously commoditised" Let the insurance money became a bull market the big winner.