Small and medium-sized insurance companies are reducing their positions due to pressure on solvency. Several insurance industry insiders stated that this is a normal adjustment and will not change the trend of increasing holdings.

Recently, the fluctuating adjustment of A-shares has sparked market discussions. After the money-making effect cooled down, the wait-and-see sentiment of funds gradually intensified. There were reports that small and medium insurance companies reduced their positions due to the new solvency regulation, which may be one of the main reasons for market volatility. Upon verifying with many market professionals, the above information is not accurate, and insurance funds are by no means the main cause of market fluctuations. "The new solvency regulations are still being formulated, and institutions generally expect that the implementation deadline is not clear." Many insurance industry professionals admitted that the insurance industry is highly concentrated, with large companies dominating most of the industry's investment assets, so the reduction in positions by some small and medium-sized insurance companies has a very limited overall impact on the market. "More importantly, the second phase of the solvency regulation has been officially implemented in 2022. Although there is a subsequent extension of the transition period, the three-year period has already been in place for large insurance companies, and most small and medium-sized insurance companies have already adjusted and are gradually responding to pressure. The corresponding assessment is also dynamic and not as discussed in the market until the end of March."