On February 14, the collective decline of securities companies caught many investors off guard, and the “empty” gas surrounding securities companies was also very strong.
However, according to the statistics of the Securities Times reporter, since the beginning of this year, the northward capital has quietly increased the position of many leading securities companies. At the same time, since the second half of last year, the position proportion of public funds in brokerage stocks has also continued to pick up. Some analysts believe that although the market has shaken the wealth management logic recently, the wealth management logic is still effective. In particular, the performance of securities companies in 2021 is generally expected, and the securities companies that have been undervalued for a long time may fall out of high cost performance.
northbound funds favor head securities companies
After entering 2022, although the overall transaction in the A-share market is light, the northbound capital, which has always been known for its keen sense of smell, has begun to increase its positions quietly.
According to the data, as of February 14, since 2022, northbound capital has concentrated on adding positions, including A-share head securities companies such as Huatai Securities Co.Ltd(601688) , Haitong Securities Company Limited(600837) , of which Huatai Securities Co.Ltd(601688) alone has a net purchase amount of 1.68 billion yuan, followed by Haitong Securities Company Limited(600837) , Gf Securities Co.Ltd(000776) , China Galaxy Securities Co.Ltd(601881) securities, with a net purchase amount of 772 million yuan, 440 million yuan and 213 million yuan respectively.
From the perspective of capital flow trend, among the 24 trading days with data statistics, Huatai Securities Co.Ltd(601688) and Haitong Securities Company Limited(600837) were net bought by northbound capital in 16 trading days, while the net buying days of northbound capital in Dongxing Securities Corporation Limited(601198) and China Galaxy Securities Co.Ltd(601881) securities 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 100 million yuan, 460 million yuan, 203 million yuan and 104 million yuan respectively.
“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 growth sector adjustment, the undervalued securities companies sector has won the favor of funds.” Wang Xiaofeng, the chief analyst of the securities sector, said that although the growth rate of the securities sector is expected to be higher than that of the short-term capital sector, there is still no significant impact of the reform of the securities market, and the chief analyst of the 6018{securities sector is expected to recover the excess earnings in the short-term.
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, while the shares of the two funds were 30.509 billion and 21.147 billion respectively on January 1. 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 brokerage sector accounted for 0.66% of the positions of heavy positions of public offering shares, which further increased from 0.61% in the third quarter of last year, indicating that the investment sentiment of the brokerage sector continued to pick up.
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; Chinalin Securities Co.Ltd(002945) due to the prospect of strategic cooperation with the Internet platform, it has also entered the list of heavy positions.
Sun Jiageng, a non banking analyst, said that nevertheless, the allocation proportion of institutional funds to the brokerage sector is still low as a whole, which means that the subsequent rise momentum of the sector is sufficient, and the allocation 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 cross year spring market of the sector.
shareholders are adding positions in real gold and silver
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 actively increasing their holdings.
On November 22, 2021, Huatai Securities Co.Ltd(601688) announced that based on confidence in the future development of the company, the 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”) is also increasing its positions. 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 last year to 208 million shares on January 19 this year, 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 disclosed by the Hong Kong stock exchange, on January 4, ningquan capital bought Central China Securities Co.Ltd(601375) H shares (i.e. Zhongzhou securities) again, and the number of shares jumped to 146 million, with a shareholding ratio of 12.24%.
In fact, ningquan capital continued to buy Zhongzhou securities at least in August 2020, when it held only 59.763 million shares, which also means that the agency’s buying action lasted for at least a year and a half. Meanwhile, in 2021, 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) .
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, all 17 securities companies that issued performance forecasts reported positive results. It is expected that the net profit of listed securities companies will increase by about 35% year-on-year, mainly due to the significant year-on-year recovery of trading volume in 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, compared with the increase of many mutual funds in the United States in the 1980s, there is still a lot of room for holding securities companies to go up at present; 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.
