Core view
Clarify the differences between the construction of Beijing stock exchange and the development direction of China’s capital market. This week, Xu Ming, chairman of Beijing stock exchange, introduced the main ideas for the construction and development of Beijing stock exchange and the new third board in the future. The Beijing stock exchange and the new third board will focus on serving innovative small and medium-sized enterprises. In the process of identifying innovative small and medium-sized enterprises, it is necessary to clarify the “two groups of relations”: 1) innovative small and medium-sized enterprises cover all industries and fields of the national economy, including not only emerging industries, but also “specialized and new” enterprises in traditional industries; 2) Innovative small and medium-sized enterprises, as well as “hard technology” enterprises on the science and innovation board and “three innovations and four innovations” enterprises on the gem, have the attribute of innovation. The development stage of innovative small and medium-sized enterprises served by the Beijing stock exchange and the new third board is earlier, the industry distribution is wider, and the innovation attribute is more accurate. Clarifying the future development direction and differentiated positioning is conducive to promoting the dislocation development of the Beijing stock exchange and the “mass entrepreneurship and innovation” board. It can not only complement each other and complement each other to promote the listed financing entities with wider coverage of the A-share market, but also form a benign competitive relationship to promote the gradual improvement of China’s multi-level capital market system and better serve the medium and long-term development of scientific and technological innovation and the new economy.
The CSRC will focus on promoting the reform of the whole market registration system and guiding medium – and long-term funds into the market. This week, the CSRC website announced the answers to hot issues including the reform of the registration system and guiding medium and long-term funds into the market: 1) promote the whole market registration system. The CSRC said it would continue to track new situations and problems in the market, timely evaluate and improve relevant systems and rules, further improve the effectiveness of the IPO system, do a good job in the pilot evaluation and experience summary of the registration system, adhere to the general tone of seeking progress while maintaining stability, and comprehensively study and promote the reform of supporting systems such as the whole market registration system and trading mechanism; 2) Guide medium and long-term funds to enter the capital market. The CSRC said it would continue to comprehensively deepen the reform of the capital market, continuously increase the proportion of direct financing, develop professional institutional investors, guide more medium and long-term funds to enter the capital market, and promote the benign interaction between the capital market, medium and long-term funds and the real economy. The statement of the CSRC undoubtedly laid a friendly foundation and a positive tone for the policy side of the capital market this year, focusing on the non bank sector, especially the brokerage sector.
The debt end of life insurance still showed a pressure trend at the beginning, and the logic of high-speed growth of auto insurance was further consolidated. In terms of life insurance, Guoshou, Ping An, CPIC, Xinhua and PICC made a good start. In the first month, the growth rate of premiums was – 5.3%, – 0.8%, – 1.1%, + 3.6% and 30.2% respectively. The growth rate of PICC was much higher than that of the industry, which was mainly driven by the year-on-year growth of single payment business of 137%. The first year’s regular payment was still under pressure of – 13.5%. If the influence of single payment extreme value was excluded, the growth rate of total premiums was only 1.6%, On the whole, there is still no obvious improvement in the first month, but the impact of the high base of serious illness impulse in January last year is gradually disappearing. We can further observe the sales rhythm of follow-up new orders. In terms of property insurance, the year-on-year growth rates of PICC, Ping An and CPIC in the first month were 13.8%, 8.2% and 12.7% respectively. Among them, PICC auto insurance achieved a rapid growth of 14.5%, further consolidating the logic of both quantity and quality. Our expectations for the property insurance sector are still relatively optimistic.
Investment proposal and investment object
In terms of securities companies, double click on market liquidity and policy, continue to be optimistic about the spring market of the sector, select high-quality targets with fundamentals, and maintain the optimistic rating of the industry. At present, it is still the first to promote the main line of derivatives, recommending Citic Securities Company Limited(600030) (600030, overweight), Huatai Securities Co.Ltd(601688) (601688, overweight), and paying attention to China International Capital Corporation Limited(601995) (03908, not rated); Secondly, we should continue to pay attention to the main line of large public offering and recommend Gf Securities Co.Ltd(000776) (000776, buy), China Industrial Securities Co.Ltd(601377) (601377, increase Holdings).
In terms of diversified finance, A-Shares recommend Zhejiang Huatie Emergency Equipment Science & Technology Co.Ltd(603300) (603300, buy) as the leading lessee of aerial working platform (AWP); Hong Kong stocks recommend Far East Hongxin (03360, buy), a leader in financial leasing, and BOC aviation leasing (02588, overweight), a leader in Asia Pacific Aircraft leasing; US stocks recommend Noah wealth (Noah. N, buy), a third-party high net worth financial management leader.
In terms of insurance, the scale of the team has gradually bottomed out, the production capacity of the remaining team has been improved, and it is expected to start a good start gradually; The inflection point of property insurance has arrived, and we look forward to the synchronous improvement of premium and cor; The outlook of the equity market is optimistic, and the liberalization of the investment ceiling adds upward flexibility. We are optimistic about large insurance companies that actively promote reform and enhance production capacity through science and technology empowerment and cross sales, and maintain the optimistic rating of the industry. Follow up suggestions focus on Ping An Insurance (Group) Company Of China Ltd(601318) (601318, buy), China Pacific Insurance (Group) Co.Ltd(601601) (601601, not rated), AIA (01299, not rated).
Risk tips
The suppression of systemic risk on the performance and valuation of securities business; Stricter supervision than expected;
The long-term interest rate is lower than expected; Related policy risks in diversified financial field.
