The Financial Services Association, November 13, reported that the two pharmaceutical companies were listed by insurance funds within the same day and became the focus of market attention.

Today, Sinopharm Co., Ltd. announced that the company's shareholder, Xinhua Insurance, increased its shareholding of 1.4999 million shares through centralized bidding transactions in the secondary market on November 12, accounting for 0.2% of the company's total share capital of issued common shares. The capital for this increase in shares is Xinhua Insurance's own funds. Prior to this equity change, Xinhua Insurance and its co-actors held a total of 36.7463 million shares of the company, accounting for 4.87% of the company's total share capital. After this change in equity, Xinhua Insurance and its co-actors held a total of 38.2462 million shares of the company, accounting for about 5.07% of the company's total share capital.

At the same time, Shanghai Pharmaceutical also issued an announcement stating that on November 12, 2024, Xinhua Insurance will increase its holdings of 9.9998 million A shares and 1.5 million H shares of Shanghai Pharmaceutical under unlimited sales conditions through centralized bidding transactions in the secondary market. After this increase in holdings, Xinhua Insurance and its co-actors held a total of 0.149 billion A shares and 37.8959 million H shares of Shanghai Pharmaceutical, accounting for about 5.05% of the company's total share capital.

Judging from the stock price performance, Sinopharm Co., Ltd. and Shanghai Pharmaceutical both performed well yesterday. Under the general market adjustment yesterday, both stocks strengthened sharply. Sinopharm shares rose more than 8% in the intraday session yesterday and closed up 5.47%.

Shanghai Pharmaceuticals rose nearly 6% in the intraday session yesterday, and closed up 3.98% yesterday.

Among the two pharmaceutical stocks mentioned above, the market value of Shanghai Pharmaceutical is relatively larger. As of today's close, the total market value of the stock was 77.47 billion yuan, and the total market value of Sinopharm shares was 25.97 billion yuan. The dividend ratio of both companies was over 2%.

Judging from their performance, the two pharmaceutical companies that have been listed by insurance have shown a slight increase in their performance this year. According to Shanghai Pharmaceutical's three-quarter report for this year, the company achieved operating income of 209.629 billion yuan in the first three quarters, an increase of 6.14% over the previous year; net profit attributable to shareholders of listed companies was 4.054 billion yuan, an increase of 6.78% over the previous year. According to Sinopharm's three-quarter report, the first three quarters achieved operating income of 38.029 billion yuan, an increase of 4.1% year on year; net profit attributable to shareholders of listed companies was 1.481 billion yuan, an increase of 1.3% year on year.

It is worth mentioning that in addition to Sinopharm Co., Ltd. and Shanghai Pharmaceuticals, insurance has listed 4 listed companies since the end of October. On October 30, Longyuan Electric Power announced that Ruizhong Life would increase its holdings of Longyuan Electric Power H shares; on November 6, China Post Insurance announced that it would increase its holdings of the listed Anhui Express H shares.

According to incomplete statistics, as of today, the total number of listed insurance companies listed during the year reached 14, and the number of listed companies listed on the list reached a four-year high.

In addition to the 4 companies mentioned above, Great Wall Life previously listed 6 companies during the year, namely Bank of Wuxi, Chengfa Environmental, Qingang, Jiangnan Water, Gan-Yue Expressway, and Green Power Environmental Protection; Zijin Financial Insurance listed Huaguang Huaneng; subsidiaries of China Taibao listed Huadian International Power Co., Ltd. and Huaneng International Power Co., Ltd.; and Ruizhong Life listed for exemption in China.

Judging from the industry attributes of listed companies, they include utilities, banking, transportation, pharmaceuticals, etc. According to the industry, insurance companies listed during the year generally have high dividends. The Huachuang Securities Research Report points out that since 2023, judging from what has been listed, the risk factors for long-term equity investment have been tightened, the characteristics of high ROE listing have weakened, and the dividend style has become more prominent.