In the third quarter of 2026, the combined equity fund losses of five listed insurance companies reached nearly 400 billion yuan. Ping An and Taiping saw significant declines in net profit. The performance setback did not stem from their core insurance business, but rather from losses in equity investments. The underlying cause is a contradictory performance evaluation mechanism: regulators encourage long-term investment and extend the weighting of performance evaluations, but frontline investment personnel are still evaluated based on quarterly and annual rankings. This led to insurance funds buying up tech stocks at high levels in July, followed by concentrated selling during the September market downturn. This also triggered a sell-off by mutual funds and private equity firms, creating a market panic. Even AI-driven quantitative trading institutions like Huanfang Quantitative Fund experienced significant drawdowns. The difficulty in achieving a stable, long-term bull market in the A-share market is essentially due to the fact that the scale of major shareholder share reductions far exceeds share buybacks, resulting in a continuous outflow of funds.