Research On The Investment Preference And Change In A-share Market Of China’s Insurance Capital

From 2005 to 2015,people’s demand of insurance and the passion of social capital in insurance have increased enormously.And the rapid development of underwriting business has also produce huge demand of investment of insurance company.Because of the lack of investment tools and long duration bonds,the insurance capital has shown great passion in stock market.And small and medium-sized insurance companies have great power on that.However,recently more and more insurance company hold more than 5%of the stock of a listed company by universal life insurance,it bring great risk to the operation of insurance industry.As a member of institutional investor,academic circle haven’t do much empirical research about insurance investment preference in stock.So that this paper will do the research about the insurance companies’ investment preference in stock,to find whether this insurance capital have obey the prudence principle in investment during difference market environment,to analyze the reason behind,and to give some suggestion for supervision department.By the research,we find that insurance capital in China prefer to buy stock in the industry of finance and realty.It also shows a trend of centralization of share holdings.We also find that the stock investment strategy of insurance capital in China is much simple.Insurance capital prefers stock of high price and low delta.But the tolerance of risk of insurance capitals has changed.Some insurance companies have become radical in stock investment.