Does the sharp decline of brokerage stocks hide the impassability of wealth management logic?
According to the statistics of Chinese reporters from securities companies, since this year, northbound funds have quietly increased their positions in many leading securities companies, and since the second half of last year, the position proportion of public funds in securities companies’ shares has also continued to pick up. At the same time, a number of shareholders of securities companies have also increased their holdings in the Hong Kong stock market, showing the confidence of institutional funds in securities companies.
Some analysts believe that the performance of securities companies in 2021 is generally expected to be happy. With the support of institutional funds, the securities companies that have been undervalued for a long time may fall out of high cost performance.
northbound funds favor head securities companies
Although the overall transaction in the A-share market is cold after entering 2022, the northbound capital, which has always been known for its acumen, has begun to increase its positions quietly.
According to the data, as of February 14, since 2022, northbound funds have concentrated on adding positions, including A-share head securities companies such as Huatai Securities Co.Ltd(601688) , Haitong Securities Company Limited(600837) , of which the net purchase amount of Huatai Securities Co.Ltd(601688) alone is as high as 1.68 billion yuan, followed by 772 million yuan of Haitong Securities Company Limited(600837) , {440 million yuan of Gf Securities Co.Ltd(000776) and 213 million yuan of China Galaxy Securities Co.Ltd(601881) .
From the perspective of fund flow trend, in the 24 trading days with data statistics, Huatai Securities Co.Ltd(601688) and Haitong Securities Company Limited(600837) were net bought by northbound funds in 16 trading days, while the net buying days of northbound funds in Dongxing Securities Corporation Limited(601198) and China Galaxy Securities Co.Ltd(601881) securities companies were as high as 18 and 17 days.
In addition, according to Everbright Securities Company Limited(601788) statistics, just one week after the Spring Festival, the funds going north increased a large number of A-share brokerage shares, of which the net purchase amount of Huatai Securities Co.Ltd(601688) , Gf Securities Co.Ltd(000776) , Tianfeng Securities Co.Ltd(601162) exceeded the line of 100 million yuan, respectively 460 million yuan, 203 million yuan and 104 million yuan.
“Since the beginning of the year, funds from northbound 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 sector has been favored by funds.” Everbright Securities Company Limited(601788) Wang Yifeng, chief analyst of Non Bank of China, said that although there is no obvious excess return in the securities sector, the securities sector with high performance growth in the large financial field still has a demand for make-up. It is expected that the valuation of the securities industry is expected to be further repaired under the catalysis of factors such as hot short-term market transactions and the expectation of capital market reform policies.
From the perspective of brokerage ETF, the shares of many brokerage themed ETF funds increased significantly after the beginning of the year. For example, as of February 14, the shares of Cathay Pacific China Securities all index securities company ETF and Huabao China Securities all index securities company ETF were 32.937 billion and 23.162 billion respectively; On January 1, the shares of the two funds were only 30.509 billion and 21.147 billion respectively. This means that in just one and a half months, the net purchase shares of ETFs of the two securities companies exceeded 4.4 billion!
It should be noted that the continued undervaluation of the securities sector has also attracted the attention of public funds early. According to the statistics of Orient Securities Company Limited(600958) , by calculating the details of heavy positions of equity public offering funds, as of the fourth quarter of last year, the positions of public offering heavy positions in the securities sector accounted for 0.66%, which further increased compared with 0.61% in the third quarter of last year, indicating the continuous recovery of investment sentiment in the securities sector.
In particular, most of the top 10 heavyweight stocks in the securities sector were further increased. For example, Citic Securities Company Limited(600030) , Gf Securities Co.Ltd(000776) , Huatai Securities Co.Ltd(601688) increased from 0.110%, 0.156% and 0.101% month on month to 0.179%, 0.178% and 0.117% respectively, while Chinalin Securities Co.Ltd(002945) also entered the list of heavy position shares due to the prospect of strategic cooperation with internet platforms.
Sun Jiageng, a non banking analyst, said that despite this, the allocation proportion of institutional funds to the brokerage sector is still low as a whole. This means that the subsequent rising momentum of the sector is sufficient, and the configuration cost performance of some high-quality targets is still high. Under the double-click of market liquidity and policy, continue to be optimistic about the spring market of the sector.
shareholder real gold and silver is adding positions
In the fourth quarter of 2021, in addition to the increased positions of public funds in securities companies, the major shareholders of listed securities companies are also trying to increase their holdings. On November 22, 2021, Huatai Securities Co.Ltd(601688) announced that based on confidence in the future development of the company, its shareholder Jiangsu Guoxin Group Co., Ltd. (hereinafter referred to as “Guoxin group”) increased its holdings of 24248200 Huatai Securities Co.Ltd(601688) H shares through Hong Kong stock connect with its own funds of 216 million yuan.
Coincidentally, another major shareholder of Huatai Securities Co.Ltd(601688) Jiangsu suhao Holding Group Co., Ltd. (hereinafter referred to as “suhao holding”) has also increased its positions in the near future. According to the data disclosed by the Hong Kong stock exchange, since the second half of 2021, SOHO Holdings has increased its holdings of Huatai Securities Co.Ltd(601688) H shares, rising from 138 million shares at the end of July 2021 to 208 million shares on January 19, 2022, and the shareholding ratio has also increased from 8.01% to 12.08%.
Similarly, in the Hong Kong stock market, the 10 billion private placement institution Shanghai ningquan Asset Management Co., Ltd. (hereinafter referred to as “ningquan capital”) has not stopped increasing its holdings of H shares of securities companies. According to the data of the Hong Kong stock exchange, on January 4, ningquan capital bought Central China Securities Co.Ltd(601375) H shares again, and the number of shares jumped to 146 million, with a shareholding ratio of 12.24%.
In fact, ningquan capital continued to buy H shares of Zhongzhou securities at least in August 2020. At that time, its shareholding ratio was only 59.763 million shares, which also means that its buying action lasted for at least a year and a half. At the same time, ningquan capital also increased its positions in H shares of securities companies such as China Securities Co.Ltd(601066) , Guotai Junan Securities Co.Ltd(601211) , Guolian Securities Co.Ltd(601456) , Orient Securities Company Limited(600958) in 2021.
Why do securities companies continue to get institutional funds? In addition to the continued undervaluation of the sector valuation, the sharp rise in the overall performance of the industry may be another core logic for institutions to increase their positions.
Haitong Securities Company Limited(600837) said that as of January 28, the performance of 17 securities companies that issued performance forecasts were expected to be happy, and the net profit of listed securities companies is expected to increase by about 35% year-on-year. Mainly due to the significant year-on-year pick-up in the trading volume of the two cities; Under the structural market, the wealth management transformation of brokerage business of securities companies shows results; As well as the deepening of capital market reform, IPO underwriting has brought incremental performance.
The non bank research team of Cinda securities took a clear stand on February 13 and shouted “the securities market is imminent”. The team believes that although the market has shaken the logic of wealth management recently and believes that the market has affected the issuance of funds, thus breaking the logic of wealth management of securities companies, the two main lines of wealth management are still reliable.
First, as a shadow stock of public funds, securities companies still have a lot of room for holding securities companies compared with the increase of many mutual funds in the United States in the 1980s; Second, on the channel side, the cold issuance of short-term popular track funds can not stop the flood of funds entering the market. At the same time, under the comprehensive registration system, investment banks will also contribute considerable performance.
Most of the listed companies of securities companies expect good performance in 2021
Northward capital overweight shareholders also increased their holdings of institutions and watched the stock of securities companies improve
Securities companies still have performance support, and there is great potential in the era of wealth management
