Chinese Mainland insurers have tripled their investments in Hong Kong initial public offerings this year, seeking higher returns as they face prolonged low interest rates and a shortage of quality assets at home.

As of Monday, total subscriptions by Chinese Mainland insurers in Hong Kong IPOs exceeded HKD3.4 billion (USD440 million), up from less than HKD1 billion during the same period last year, according to data from Choice. They have participated as cornerstone investors in at least seven IPOs so far this year, compared with just four for all of 2023.

When investing in Hong Kong IPOs, Chinese Mainland insurance firms have primarily targeted companies in “hard tech” and emerging consumer sectors, including new energy vehicles, semiconductors, and energy storage technologies.