The previous Central Economic Conference placed “Prevention and Mitigation of Major Risks” as one of the three major topics of the conference as well as the government policy focus of the next three years. In recent years, China has emphasized risk prevention, supervision and de-leveraging of the financial market. It is expected that the weak performance of bond market will continue this year and the yield of the bond market is expected to remain at a relatively high level. The 10-year bond yield, which currently stands above 3.9%, has shown an obvious upward trend since the second half of last year. In particular, as the United States has already entered into a rate hike cycle, the PBOC has also started to raise interest rate utilizing different financial instruments. Moreover, the regulatory tightening limits the inflow of capital to the debt market, which is expected to stimulate the surge of yield to maturity, translating into a higher investment profit for China insurance players. Recommend to invest in China insurance players with higher proportion of long-term protection products.