New Capital Enters the Market: 10th Insurance-Backed Private Securities Fund Begins Investing

insurance-backed private securities fund Yangguang Heyuan (阳光和远) has officially started investing under China’s insurance long-term investment pilot.

Key Points

What happened — insurance-backed private securities fund launch

Sunshine-backed private securities fund Yangguang Heyuan (Yangguang Heyuan 阳光和远) has completed registration with the Asset Management Association of China and officially entered operation.

The fund was established on November 21, 2025 and is the 10th private securities fund tied to insurance capital to begin formal investing under China’s insurance long-term investment pilot.

Fund structure and sponsors — who’s behind this insurance capital move

The fund is managed by Yangguang Hengyi (Yangguang Hengyi 阳光恒益（青岛）私募基金管理有限公司), a private fund manager set up by Sunshine Asset (Yangguang Zichan 阳光资产), a unit under Sunshine Insurance Group (Sunshine Insurance Group 阳光保险, ticker 6963.HK).

Yangguang Hengyi is the seventh insurance-affiliated private fund manager to complete registration under the pilot.

The fund is an equity-focused private securities investment fund.

Its stated investment scope includes stocks that are constituents of the CSI 300 Index (沪深300指数成份股), Hang Seng Hong Kong Stock Connect index constituents (恒生港股通指数成份股), related index ETFs and index-style funds.

The investment objective is long-term preservation and appreciation of fund assets under controlled risk.

The fund term is 10 years from establishment, with contractual procedures allowing extension or early termination as agreed.

Sunshine Life Insurance (Yangguang Renshou 阳光人寿), a subsidiary of Sunshine Insurance Group, intends to subscribe the entire offering (100% of issued shares) and to commit the approved pilot capital contribution of ¥20 billion RMB ($2.78 billion USD) in installments.

Conversion estimate uses 1 USD ≈ ¥7.20; see note below.

Regulatory / operational progress — paperwork and custody

Sunshine Insurance disclosed that Yangguang Hengyi (as fund manager), Sunshine Life (as fund unitholder) and China Merchants Bank (Zhaoshang Yinhang 招商银行) Qingdao branch (as custodian) signed the fund contract on November 17, 2025, and will proceed with filing procedures for the pilot fund.

Context: the insurance long-term investment pilot — what the program is designed to do

China’s insurance long-term investment pilot allows approved insurers to invest via contract-style funds in long-duration equity assets.

The pilot includes regulatory and accounting supports designed to reduce earnings volatility under the new accounting standards and to improve asset–liability matching for insurers.

The pilot aims to encourage insurance capital to allocate more to long-term investments that match liability profiles and to strengthen insurance funds’ role as a stabilizer in capital markets.

So far, three approval batches have been issued under the pilot, with total approved pilot scale of ¥222 billion RMB ($30.83 billion USD).

Approved participants include major life insurers and their asset-management affiliates such as:

• China Life (Zhongguo Renshou 中国人寿)
• New China Life (Xinhua Insurance 新华保险)
• China Pacific Insurance (Taibao 太保寿险)
• Taikang Life (Taikang 人寿)
• Sunshine Life (阳光人寿)
• PICC Life (Renbao Renshou 人保寿险)
• China Taiping Life (Taiping 太平人寿)
• Ping An Life (Ping An 人寿)
• China Post Insurance (Zhongyou Baoxian 中邮保险)
• and associated insurance asset-management companies, plus a number of small and midsize insurers.

Approval totals cited above are pilot aggregate figures disclosed by regulators and participants.

Progress of insurance-affiliated private fund managers and funds — who’s launched what

To date seven insurance-affiliated private fund managers have been established and have launched a combined total of 10 private securities funds that are now in operation under the pilot.

Examples listed by regulators and market reporting include:

• Honghu (Honghu 鸿鹄) Fund Series — Phase I, Phase II, Phase III No.1, Phase III No.2
• Taikang (Taikang 泰康) — Wengxing (稳行) Phase I Fund
• China Pacific (Taibao 太保) — Zhiyuan (致远) No.1 Fund
• Hengyi (Hengyi 恒毅) — Youxuan (优选) Fund
• China Taiping (Taiping 太平) — Zhuoyuan (卓远) No.1 Fund
• PICC asset affiliate (Renbao 人保) — Qiyuan Huizhong (启元惠众) No.1 Fund
• Yangguang Heyuan (阳光和远) Fund (the newly registered fund)

Why this matters — investor takeaways and market impact

Market participants and analysts say the pilot’s supporting policies on accounting measurement and solvency treatment reduce one major barrier—profit-and-loss volatility under new accounting rules—to insurers increasing allocations to equities.

By enabling a contract-based long-term investment approach, the pilot can help insurers build a more durable portfolio of long-term assets that better match liabilities.

In aggregate, these funds may raise insurers’ appetite for appropriately sized, long-duration equity investments and improve the stability of capital markets by adding long-term, patient capital.

Key figures (reported)

• Sunshine Life planned contribution to Yangguang Heyuan: ¥20 billion RMB ($2.78 billion USD).
• Total approved pilot scale (three batches): ¥222 billion RMB ($30.83 billion USD).
• China Post Insurance / China Post Asset Management third-batch approved pilot scale: ¥10 billion RMB ($1.39 billion USD).

USD conversions are approximations using 1 USD ≈ ¥7.20 (approximate market rate on 2025.11.26).

Practical implications for investors, founders, and allocators

If you’re an investor, pay attention to three things when insurers start allocating to long-duration equities via these funds:

• Time horizon alignment: These funds are explicitly long-term (10+ years), which lowers short-term liquidity pressure and can sustain alpha generation in growth-oriented equities.
• Index exposure mechanics: The stated scope — CSI 300, Hang Seng Hong Kong Stock Connect, ETFs — suggests these funds will pursue index-heavy, liquid exposures and index-style strategies that are easier to scale and monitor.
• Systemic stability angle: Increased insurer demand for long-duration equities can act as a stabilizing force for public markets during bouts of volatility, provided allocations remain disciplined and diversified.

For founders and startup CEOs, a clearer pipeline of patient capital from regulated insurers could influence M&A timing, IPO windows, and secondary market depth for late-stage private companies considering public listings in China or Hong Kong.

For fintech and asset managers, the pilot creates a new institutional client segment that values long-term, contract-based solutions and prefers clear accounting/solvency treatment that reduces headline volatility.

Disclosure

This article translates and summarizes reporting credited to券商中国 (Quanshang China).

It is for information only and does not constitute investment advice.

Readers should perform their own due diligence and consult qualified advisors before making investment decisions.

References

• 新资金入市！第10只险资私募基金开始投资运作 – 东方财富
• China Banking and Insurance Regulatory Commission (CBIRC) – Official Website
• 券商中国 (general homepage) – 券商中国

insurance-backed private securities fund