In the third quarter of 2026, the combined stock and fund losses of the five listed insurance companies approached RMB 400 billion; Ping An and Taiping saw significant declines in net profit, with their performance setbacks stemming not from their core insurance operations but primarily from losses in equity investments. The root cause lies in a conflict within the performance evaluation system: regulators encourage long-term investment and extend evaluation horizons, yet frontline investment personnel are still assessed based on quarterly and annual rankings. This led insurance funds to aggressively buy technology stocks at peak prices in July, then panic-sell en masse as markets declined in September, triggering follow-on selling by mutual and private funds, and even causing substantial drawdowns at AI-driven quantitative firms like Huafang Quant. The A-share market struggles to sustain a stable, long-term bull market because the scale of major shareholder sell-offs far exceeds share repurchases, resulting in continuous capital outflows.