The Shanghai Stock Exchange has welcomed the debut of the first two asset-backed securities (ABS) managed by insurance asset management companies, marking a significant milestone in the financial sector. These securities, with a combined issuance exceeding CNY 2 billion ($277 million), are managed by China Life Asset and Taikang Asset.
In addition to these pioneering efforts, several other ABS managed by insurance asset managers have secured approval from the exchange. Notable among these are the “Pacific-Haitong Hengxin Small and Micro Enterprise High-Quality Development Phase 1-2 Asset Support Special Plan,” managed by China Pacific Insurance Asset Management, and the “China Life-Innovation and Technology Supply Chain No. 1-X Asset Support Special Plan,” managed by China Life Wealth Management Co.
On October 13, 2023, five insurance asset management companies—China Life Asset Management, Taikang Asset Management, CPIC Asset Management, PICC Asset Management, and Ping An Asset Management—were authorized by the Shanghai Stock Exchange and Shenzhen Stock Exchange to pilot ABS and REIT (real estate investment trust) businesses. This approval marks the first instance of insurance asset managers venturing into these markets.
Previously, insurance asset management institutions primarily engaged in insurance asset support plan business through the China Insurance Asset Registration and Trading System and invested in exchange ABS products.
Following the approval of these initial five companies, several other insurance asset management firms have also received the green light to participate in the pilot program.
The involvement of insurer-owned asset management companies in the ABS market not only opens new financing channels but also broadens the investment scope for insurance funds.
