On November 13, Financial Association reported that two pharmaceutical companies were targeted by insurance funds on the same day, becoming the focus of market attention.

Today, China National Medicines Corporation announced that its shareholder New China Life Insurance increased its holdings by 1.4999 million shares through concentrated bidding on the secondary market on November 12, accounting for 0.2% of the company's total outstanding common shares. The funding for this increase in shareholding comes from New China Life Insurance's own capital. Before this change in equity, New China Life Insurance and its concerted persons held a total of 36.7463 million shares, approximately 4.87% of the total share capital of the company. After this equity change, New China Life Insurance and its concerted persons held a total of 38.2462 million shares, approximately 5.07% of the total share capital of the company.

At the same time, SH Pharma also announced that New China Life Insurance increased its holdings of 9.9998 million unrestricted tradable A shares and 1.5 million H shares of SH Pharma through concentrated bidding on the secondary market on November 12, 2024. After this increase in holdings, New China Life Insurance and its concerted persons held a total of 0.149 billion A shares and 37.8959 million H shares of SH Pharma, approximately 5.05% of the company's total share capital.

From the stock price performance, both China National Medicines Corporation and SH Pharma performed well yesterday. In the context of adjustments in the large cap index yesterday, both stocks showed significant strength. China National Medicines Corporation's stock rose over 8% at one point during the trading day yesterday, closing up 5.47%.

SH Pharma's stock also saw a rise of nearly 6% at one point yesterday, closing up 3.98%.

Among the two pharmaceutical stocks mentioned, SH Pharma has a relatively larger market cap. As of today's closing, the total market cap of the stock is 77.47 billion yuan, while China National Medicines Corporation's total market cap is 25.97 billion yuan, with both companies having a dividend yield exceeding 2%.

In terms of performance, both pharmaceutical companies targeted by insurance funds this time have shown slight growth this year. SH Pharma's Q3 report shows that in the first three quarters, the company achieved revenue of 209.629 billion yuan, a year-on-year growth of 6.14%; it achieved a net income attributable to shareholders of listed companies of 4.054 billion yuan, a year-on-year growth of 6.78%. China National Medicines Corporation's Q3 report shows that in the first three quarters, it achieved revenue of 38.029 billion yuan, a year-on-year growth of 4.1%; net income attributable to shareholders of listed companies was 1.481 billion yuan, a year-on-year growth of 1.3%.

It is worth mentioning that, along with china national medicines corporation and sh pharma, since the end of October, insurance funds have established positions in four listed companies. On October 30, china longyuan announced that ruizhong life increased its shareholding in china longyuan H shares; on November 6, china postal insurance announced that it increased its shareholding in anhui expressway H shares.

According to incomplete statistics, as of today, the number of listed companies with insurance fund positions this year has reached 14, setting a new high in nearly four years.

Aside from the four companies mentioned above, previously, great wall life established positions in six listed companies this year, namely wuxi rural commercial bank, city development environment, qinhuangdao port, jiangsu jiangnan water, jiangxi ganyue expressway, and dynagreen env; zijin property insurance established a position in wuxi huaguang environment & energy group; a subsidiary of china pacific insurance established a position in huadian power and huaneng power; as well as ruizhong life establishing a position in china tourism group duty free corporation.

From the perspective of the industry attributes of the listed companies in which positions have been established, they include public utilities, banks, transportation, and health care a, among others. In the industry’s view, the companies targeted by insurance funds this year generally exhibit high dividend characteristics. Huachuang Securities' research reports indicate that from the perspective of the listed symbols targeted from 2023 to date, the risk indicators of long-term private equity investments have tightened, the high roe characteristics of target companies have weakened, and the dividend style has further intensified.