On the eve of the new spring, the use of insurance company funds was formalized in 2025: the scale was growing faster and the share of equities was rising further。
According to the data disclosed by the general financial supervisory authority on 12 february, by the end of the fourth quarter of 2025Insurance fundsThe applied balance was $38. 4 trillion, an increase of 15. 70 per cent from the beginning of the year and an increase of more than $5 trillion throughout the year. Specifically, the capital utilization balance of pivc was rmb 34,66 trillion, an increase of 15. 73 per cent compared to the beginning of the year; pipc had a fund utilization balance of rmb 2. 42 trillion, an increase of 9 per cent compared to the beginning of the year。
In terms of investment in venture capital, equity investments have been “stolled” and equity investments have increased significantly in relation to the balance of the use of insurance funds, up from almost four years. By the end of the fourth quarter of 2025, investments in venture capital stocks had amounted to $3. 73 trillion, an increase of more than $1. 3 trillion over the end of the previous year. Bonds continue to be the “suspension” of the greatest risk in terms of solid investment, although the pace of allocation has slowed。
As a “durable capital”, venture capital investment is not only about its ability to function as a capital market “pressure stone”, but also about the effective allocation of social resources to where national strategies and the real economy are most needed, thereby fulfilling its function as an economic “stabilizer” in promoting high-quality economic development。
Watch window
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Bonds and equitiesAsset allocationTwo important windows。
In terms of the stock market, market activity increased in 2025 and the inflow of funds contributed to the high index. In terms of volume of trade, the total number of transactions in the deep and long stock markets was 41. 42 trillion yuan, with a daily average of 1. 7 trillion yuan, an increase of 61. 9 per cent over the previous year. In terms of major equity indicators, the above-documented composite index stood at 3969 points at the end of 2025, an increase of 18. 4 per cent compared with the end of the previous year; the sdi stood at 13525 points, an increase of 29. 9 per cent compared with the end of the previous year。
Supported by dividend policies such as venture capital and long-term investment, venture capital has increased significantly over the past year. Regulatory disclosure data show that as at the end of the fourth quarter of 2025, the shares of personal and property insurance companies were allocated to 10. 12 per cent and 9. 39 per cent, respectively, and that the above figures were 7. 57 per cent and 7. 21 per cent, respectively, at the end of the fourth quarter of 2024。
The number of venture capital raisers has also reached a new high in recent years and is a microcosm of the risk increase in stock allocation. The cps disclosed data showed that in 2025, insurance assets had been raised more than 30 times, and between 2021 and 2023, the number of cards raised each year was single-digit, rising to 20 in 2024. In 2025, the risks of raising cards included life in china, life in peace, life in taihua, life in china, life in china, life in china, life in china, life in china, life in china, life in china, life in china, life in china, life in china, life in china, and life in china。
In the bond market, long-term interest rates have risen steadily in the near future. By the end of 2025, the return on the 10-year national debt was 1. 85 per cent. After 2026, the 10-year sovereign debt-receiving rate, as a whole, operated between 1. 76 per cent and 1. 90 per cent。
In the face of the continuing expansion of the venture liability and the demand for longer-term demand, the venture capital allocation needs remain. In 2025, while risk financing slowed in terms of bond allocation, bonds remained the largest asset allocation. As at the end of the fourth quarter of 2025, the shares of personal insurance companies and property insurance company bonds were 51. 11 per cent and 40. 63 per cent, respectively, and the figures were 50. 26 per cent and 39. 14 per cent, respectively, at the end of the fourth quarter of 2024。
With regard to risk allocation bonds, it is also a matter of concern that in the third quarter of 2025, the share of risk allocation bonds fell for the first time since the regulatory disclosure of relevant data in the second quarter of 2022。
Based on data for the fourth quarter of 2025, the allocation of venture capital to bonds rose slightly from the previous quarter. According to cti, the current risk-shaping bond is, on the one hand, a necessary and proactive asset-liability matching measure to reduce interest rate exposure over a long period of time, and, perhaps, a passive option for dealing with asset loss and credit clearing。
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The rise is bound to decline, and its share of bank deposits falls while venture capital increases equity asset allocation。
According to the data issued by the general financial supervisory authority, the personal insurance company allocated 7. 64 per cent of the bank balance at the end of the fourth quarter of 2025, and the property insurance company allocated 16. 09 per cent of the bank account balance at the end of the fourth quarter of 2024, with the two figures being 8. 42 per cent and 17. 37 per cent, respectively。
This is closely related to the current stage of declining interest rates on bank deposits and declining attractiveness to depositors. On 7 may 2025, the president of the people's bank of china, ban kung-sung, announced a reduction of 0. 5 percentage points, providing long-term liquidity to the market of approximately 1 trillion yuan and reducing the policy interest rate by 0. 1 percentage points. Subsequently, the state-owned bank initiated the first reduction in the interest rate of the renminbi deposits in 2025. Of these, demand deposits were reduced by 0. 05 percentage points to 0. 05 per cent and the interest rate on one-year deposits was reduced to 0. 95 per cent。
On 15 january of this year, at a new office, the people's bank of china launched eight structural monetary policy measures, including a reduction of 0. 25 percentage points in interest rates on various structural monetary policy instruments。
The course of monetary policy this year can be seen in the report issued by the people's bank of china on the implementation of china's monetary policy in the fourth quarter of 2025. The report indicated that monetary policy would continue to be moderate and liberal. The promotion of stable economic growth and a reasonable recovery in prices are important considerations of monetary policy, taking into account the strength, pace and timing of policy implementation in the light of the domestic and external economic and financial situation and the functioning of financial markets. The flexible and efficient application of a variety of policy instruments, such as the reduction of interest rates, the maintenance of liquidity and relatively liberal social financing conditions, leading to a reasonable growth in financial aggregates and a balanced flow of credit, matching the scale of social finance and the growth of the money supply with the expected objectives of economic growth, overall price levels。
In addition, as of the fourth quarter of 2025, personal risk companies allocated 5. 14 per cent and 7. 77 per cent to the portfolio fund and the long-term equity fund respectively, as compared to 4. 93 per cent and 7. 77 per cent at the end of the previous quarter, respectively, and property insurance companies allocated 7. 76 per cent and 5. 78 per cent to the portfolio fund and 5. 25 per cent respectively, as compared to 9. 12 per cent and 6. 25 per cent at the end of the previous quarter。
Quicker repositioning
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Behind the steady increase in the balance of the use of insurance funds is the cash-flow contribution of rising insurance savings requirements。
According to data published by the general directorate of financial supervision, the original insurance premium income in the insurance sector amounted to 611. 4 billion yuan in 2025, an increase of 7. 43 per cent over the previous year. Of this amount, income from the original insurance premiums for property insurance amounted to rmb 147. 03 billion, an increase of 2. 60 per cent over the same period, and income from the former insurance premiums for personal insurance amounted to rmb 4649. 1 billion, an increase of 9. 05 per cent over the same period。
Looking ahead to 2026, dong wu securities believes that market demand remains strong and that the downward adjustment of the scheduled interest rate + red risk transition will contribute to the continued optimization of the cost of the debt and will ease the spread pressure. The return on sovereign debt has fallen to around 1. 81 per cent over the last decade, and east wu securities expects that, in the future, with the domestic economic recovery, the pressure on insurance companies to build up a new class of solid investment returns will be eased if long-term interest rates continue to rise。
According to sino-thai securities, the stock balance was further higher, with a cumulative increase of 1. 6 trillion yuan in the equity base throughout the year. With the implementation of the new standards, which are expected to improve the ecology of venture capital investments in the current environment of persistently low interest rates, the rise in stock holding has gradually increased the elasticity of venture capital。
According to the united nations, the negative resonance in 2026 is expected to continue repairing the underlying insurance valuation. With respect to the liability side, it is expected that the sub-insurance policy will cover part of the resident's “disposal” funds, and that the sales of the sub-insurance policy will lead to better growth of the new insurance policy premiums and nbv, which are expected to support the life insurance policy; and that the implementation of “one-in-one” and the active optimization of the business structure by the financial insurance company will lead to a more stable cor. For the asset end, it is expected that the investment returns of insurance companies will continue to be positive, driven by regulations that guide the capital market to slow cattle, and marginal contractions in long-end interest rates。
It is foreseeable that, for the sake of a “stable economy”, the low interest rate stance will continue. In the context of macroeconomic and industrial developments, the need and motivation to increase equity assets remains. The need is for greater equity asset allocation to increase asset-end returns and reduce liability pressure. The motivation is that in 2025 a series of proactive policies were put in place at the policy and regulatory levels to increase the “risk capital” of the market, which will still protect the assets of the venture capital。
