On July 25th last year, according to the Interim Measures for the Administration of Overseas Investment of Insurance Funds, Chen Tianxiang allowed mainland insurance companies to use their own foreign exchange or purchase foreign exchange for overseas investment. At this point, the insurance funds are released from the offshore gate. By the end of last year, more than 20 insurance companies had obtained QDII qualification. Now that the qualifications are available, what should be invested in overseas markets? This has undoubtedly become a topic of concern to the market. According to the provisions of the above management measures, insurance funds can be invested in money market products such as commercial bills and negotiable certificates of deposit, fixed income products such as structured deposits, bonds and convertible bonds, and equity products such as stocks, equity funds and equity. Among these investable varieties, what kind of stock to invest in is the "center of gravity". Generally speaking, the proportion of investment assets to total assets is getting higher and higher, while the proportion of bank deposits is getting lower and lower. This is determined by the pursuit of higher investment returns by insurance funds. However, insurance funds will be adjusted flexibly with the changes in the market. Due to the market fluctuation and impact, the deposit interest rate increased. In June 2007, the proportion of investment assets decreased by 2 percentage points from 65.4% to 63.4%, while the proportion of bank deposits in total assets increased by 2 percentage points. Therefore, the proportion of bank deposits in investment assets has also increased from 38.7% to 43.7%. This adjustment is the embodiment of the flexibility in the use of insurance funds, and does not represent the trend. Luo Yi, an industry analyst of China Merchants Securities, believes that broadening investment channels can improve the long-term return on investment of insurance companies, and the valuation of many Hong Kong stocks is significantly discounted compared with A shares. In the long run, the return on investing in Hong Kong stocks should be higher. For "what will insurance funds buy when they go abroad?" The topic, this person thinks, is the stock with large discount first, because it has the valuation benchmark of A shares, and the margin of safety should be greater. H shares of China Life Insurance and Ping An of China are expected to be candidates for overseas investment by insurance companies. Secondly, he believes that stocks in the financial industry will be superior to other industries. Luo Yi said that from the survey of strategic shareholders and shareholders of insurance stocks, it can be found that insurance stocks have a special liking for financial stocks, which can be illustrated by China Life Insurance's investment in GDB and CITIC Securities, and China Ping An's investment in China Life Insurance and Shenzhen Commercial Bank. "The main reason is that there is no ceiling in the financial industry. With the increase of population, the accumulation of wealth, the expansion of financial demand and the expansion of service types, the financial industry can grow faster than other industries in the long run, and it is also an inevitable path for industrial upgrading. " Thirdly, Luo Yi believes that insurance companies are more inclined to choose insurance stocks as investment targets. He said that in the communication with the insurance industry, it is obvious that the insurance industry is very optimistic about the development prospects of its own industry, mainly because there is a huge gap between China and developed countries in terms of insurance density and depth, and insurance is an inevitable choice for consumption upgrading. At the same time, the prosperity of the capital market, the interest rate increase cycle, economic growth and the long-term investment status of insurance all enable insurance to obtain a higher return on investment and maximize the interests of shareholders. Therefore, they predict that if insurance companies invest overseas, China Life Insurance and China Ping An will become the preferred investment targets. According to the research report of CICC, they are optimistic about the investment environment that China insurance funds will face in the future. For example, interest rate hikes and inflation expectations may further push the bond yield curve to continue to rise, so that the bond yield, the most important investment asset of insurance companies, will continue to rise. "If the interest rate rise is not good for policy sales, it is good for investing in life insurance companies, because the new assets and reinvested assets of insurance companies can get higher return on investment." CICC believes that the investment channels of China insurance companies are still expanding, such as increasing the proportion of equity investment, being allowed to invest in infrastructure construction, being allowed to invest abroad, and possibly being allowed to invest in real estate and private equity in the future. These different investment channels will not only improve the return on investment in the future, but also effectively disperse and control risks. It should be said that the investment environment of China's insurance industry has been improving for a long time, and it can share the sustained and rapid economic growth of China.