Research On The Placard Investment Of Insurance

Nowadays,equity investment becomes one of important ways for insurance institutions to get profits through investment.Insurance institutions also become one of the most important institutional investors in China's stock market.Therefore,the risk control of equity investment of insurance is becoming more and more meaningful.Placard investment,which means investing until hold more than 5%of the total share capital of the listed company,is a special form of the insurance equity investment,and it will bring additional risks to the insurance institutions,the listed companies and China's stock market.A separate study of this investing behavior will conducive to further explore and analyze the risks in the equity investment process of insurance institutions,and it will put forward effective solutions for the risk of placards.Based on the research results of insurance equity investment risk from domestic and foreign literature,this article choose Qianhai life insurance whose equity investment behavior brought great negative impact to the financial market as the case to study on the additional risk brought by placards investment comparing to normal equity investment.The article research on the unique concentration risk of the placard investment,and analyze the reason why placard investment will exacerbate the maturity mismatch risk for the insurance institution and the volatility risk for the stock market.Finally,the article give suggestions to the insurance,the listed company and the stock market aiming on the risk they were brought,help them achieve the win-win situation in the equity investment.