China Postal Securities: If the equity allocation of financial products expands, it is expected that 1.15 trillion yuan of incremental funds will flow into A-shares.

Zhongyou Securities' latest views at the annual strategy meeting on December 3 mentioned that there is still considerable room for insurance and bank funds to enter the market. Data shows that the equity allocation ratio of investment assets in wealth management products in the third quarter of 2025 is only 2.1%, the lowest since data has been available since 2013. If this ratio is increased to the average of 5.44% from 2017 to 2024, it is estimated that it will bring about 1.15 trillion yuan of incremental funds to the stock market. At the same time, resident deposits are indirectly entering the market through dividend insurance, with total assets of insurance companies maintaining high growth and the proportion of dividend insurance significantly increasing, leading to an increase in the equity allocation ratio and a decrease in the proportion of ultra-long-term debt allocation.