Decrease in holdings of small and medium-sized insurance funds leads to A-share correction? Industry insiders say the impact is limited, with overall increase in holdings as the main trend.

Recently, A-shares experienced a pullback, with rumors circulating in the market that the main reason is that small and medium-sized insurance companies have reduced their positions due to the new solvency regulations. However, several insurance investment managers have denied this claim. "Insurance funds are definitely not the main cause of the market downturn," said Sun Ting, Chief Strategic Officer of Dongwu Securities and Chief Analyst of Non-Bank Financial Institutions. Several analysts have expressed similar opinions. They generally believe that there is currently no new solvency regulation, and while some small and medium-sized insurance companies may have reduced their positions recently due to solvency or performance pressure, they account for a very low proportion of the overall insurance funds. The pressure to reduce positions for large insurance companies is not significant, and their impact on the market is limited. In fact, overall, the trend for insurance funds this year is still mostly to increase positions.