In the first half of the year, mainland Chinese insurers have notably increased their stakes in Hong Kong-listed companies, drawn by the market's strong yields and vibrancy.
Public filings show that 13 of 19 major shareholding increases by these insurers targeted Hong Kong stocks, with banks—valued for their high dividends—being the most popular.
According to the Insurance Asset Management Association of China, 63% of surveyed insurers plan to boost Hong Kong investments in 2025, a trend supported by the appeal of high-dividend stocks as a hedge against falling bond yields.
It was reported that while energy and real estate firms have also offered attractive dividends this year, their sectors are less stable than banking. Given that insurance capital typically has a long investment horizon of seven to ten years, insurers tend to prioritise stability, favouring banks, telecoms, and utilities. Of the 42 members in the AH Banking Index compiled by China Securities Index Co Ltd, 14 are listed in Hong Kong, and their average dividend yield exceeds that of mainland-listed peers. Eight of these have dividend yields above 5%, compared with the industry average of around 4.14% this year.