Chinese Insurers Shift Long-Bond Strategy to Optimize Asset Structure, Says East China Securities

According to a report released by East China Securities on July 13, Chinese insurers are shifting their long-bond allocation strategy from extending duration to optimizing asset structure. The report notes that while long-duration bonds remain core to insurer asset portfolios, simply extending maturity cannot offset declining yields in a low-interest environment. The allocation approach has evolved to balance duration matching with term premium compensation and tactical timing, as the yield premium between 30-year and 10-year government bonds has recovered from historic lows, improving compensation for longer-duration holdings.
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