Market review: from February 7 to February 11, 2022, the Shanghai Composite Index rose 3%, the Shenzhen Component Index fell 0.8%, and the non bank financial index rose 5.6%, including the insurance index rose 11.1%, the brokerage index rose 3.1%, the diversified financial index rose 6.1%, and the hang Seng financial industry index rose 3.2%. Since the beginning of 2022, the Shanghai Composite Index has fallen by 4.9%, the Shenzhen composite index has fallen by 11.0%, and the non bank financial index has fallen by 1.5%, leading the Shanghai Composite Index by 3.4pct and the Shenzhen Composite Index by 9.5pct. The top five stocks in the sector rose: China Life Insurance Company Limited(601628) (14.66%), Ping An Insurance (Group) Company Of China Ltd(601318) (11.25%), * ST Anxin (10.80%), Hubei Biocause Pharmaceutical Co.Ltd(000627) (10.76%), China Pacific Insurance (Group) Co.Ltd(601601) (9.79%).
Industry key data tracking: from February 7 to February 11, 2022, the daily average share based trading volume was 980.9 billion yuan. As of February 10, the balance of margin trading and securities lending was 172.352 billion yuan, down 1.28% month on month, accounting for 2.43% of the circulating market value of a shares. The trading volume of Liangrong accounts for 6.96% of the trading volume of a shares. As of February 11, the number of pledged shares was 418.2 billion, accounting for 5.24% of the total share capital, a decrease of 0.01 PCT from last week; The total amount of market pledge is 3733 billion yuan, accounting for 3.96% of the market value of pledge; The capital raised through equity financing was 16.1 billion yuan, and the amount of corporate bonds issued was 3.5 billion yuan.
Major news of the industry: ① the CSRC issued the regulations on the supervision of the interconnection of depositary receipts business between domestic and foreign stock exchanges (1) to expand the scope of application, include qualified listed companies of Shenzhen Stock Exchange in the domestic aspect, and expand to Switzerland and Germany in the overseas aspect; (2) Allow overseas basic securities issuers to finance and adopt market-oriented inquiry mechanism for pricing; (3) Optimize the continuous supervision arrangements, and make more optimized and flexible institutional arrangements for the continuous supervision of the disclosure contents of annual reports and the disclosure obligations of equity changes. (4) Provide more abundant investment varieties for domestic and foreign investors. ② The China Banking and Insurance Regulatory Commission announced the data of major regulatory indicators of the banking and insurance industry in the fourth quarter of 2021. (1) The total assets of the banking and insurance industries grew steadily. (2) The banking and insurance industries continued to strengthen financial services. (3) The quality of credit assets of commercial banks is basically stable. (4) The solvency of the insurance industry: at the end of the third quarter of 2021, the average comprehensive solvency adequacy ratio of insurance companies included in the statistical scope was 240%, and the average core solvency adequacy ratio was 227.3%.
Focus next week: whether the stock based trading volume breaks trillion and the marginal improvement of the asset side of insurance stocks. Securities: since the beginning of 22 years ago, the funds going north have continued to flow into leading securities companies such as Citic Securities Company Limited(600030) , Huatai Securities Co.Ltd(601688) . Under the background of the adjustment of the growth sector, the undervalued securities companies have won the favor of funds. Although there is no obvious excess return in the securities sector this week, we believe that the securities sector with high performance growth in the large financial sector still has a demand for make-up. We expect that the valuation of the securities industry is expected to be further repaired under the influence of hot short-term transactions in the market and the expected catalysis of capital market reform policies. Suggestions: 1) for the leading securities companies with outstanding comprehensive strength and obvious moat advantages in the securities industry, it is recommended to recommend Citic Securities Company Limited(600030) (a + H) and Huatai Securities Co.Ltd(601688) (a + H); 2) Securities companies with differentiated competitiveness in the wealth management segment track recommend China stock market news and pay attention to Guolian Securities Co.Ltd(601456) .
Insurance: this week, the capital going north has significantly increased the allocation of insurance sector. Although the “good start” is under short-term pressure, the current stock price has fully reflected the pessimistic expectations of the market. The macro-control on the investment side is mainly “stable”. It is expected that the long-term interest rate will continue to decline with limited space. The valuation and repair process of insurance stocks mainly focuses on the marginal improvement on the asset side. Compared with the A-share market, insurance stocks have significantly excess returns this week. We believe that the valuation repair may be just the beginning. We recommend leading insurance companies with a valuation at the bottom of history and a high dividend rate in the next year. Specific target suggestions: China Property Insurance with significantly narrowed risk exposure and AIA at the forefront of channel transformation, It has long recommended Ping An Insurance (Group) Company Of China Ltd(601318) (a + H) and China Pacific Insurance (Group) Co.Ltd(601601) (a + H) for multi line layout of health and elderly care industry.
Investment suggestion: Insurance: recommend China property insurance, AIA, Ping An Insurance (Group) Company Of China Ltd(601318) (a + H), China Pacific Insurance (Group) Co.Ltd(601601) (a + H); Securities companies: recommend Citic Securities Company Limited(600030) (a + H), Huatai Securities Co.Ltd(601688) (a + H), China stock market news. It is recommended to pay attention to Guolian Securities Co.Ltd(601456) .
Risk tip: the economic recovery is less than expected; The long-term interest rate was lower than expected.
