The unstable external environment has led to fluctuations in the A-share market and public fund market, and securities companies continue to adjust, but the promotion of capital market reform policies and the continuous growth trend of residents’ wealth management demand remain unchanged. Therefore, we continue to be optimistic about the growth of the securities industry, and the decline of this valuation is expected to bring layout opportunities. Continue to recommend stocks with excellent fundamentals among leading and financial management characteristic securities companies, with emphasis on Citic Securities Company Limited(600030) , Huatai Securities Co.Ltd(601688) , China Industrial Securities Co.Ltd(601377) , Orient Securities Company Limited(600958) , China stock market news.
Industry perspective
The deepening reform of the capital market continued to advance, the undervalued value was more firm, and more securities companies were preferred. The recent decline of securities companies is mainly affected by overseas tightening expectations, the instability of the international situation, and the cooling of the A-share market and public fund market. Despite the emotional fluctuations caused by changes in the external environment, the continued deepening reform of the capital market is good for securities companies in the long run. This week, the measures for the implementation of listing and transfer of delisted companies into the delisting sector solicited public opinions, strengthened the cooperation mechanism of all institutions in the delisting process, and unblocked the delisting channel by simplifying the listing requirements of delisted companies and establishing the undertaking mechanism of host securities companies. The smooth delisting channel helps to optimize the capital market ecology of “in and out, survival of the fittest” and is the cornerstone of the full implementation of the registration system. With the continuous pace of favorable policies, securities companies still face broad development space. Under the undervalued value caused by changes in the external environment, they are more determined to look at the future trend of securities companies. If the overseas situation eases and the market valuation repair drives the trading activity again, it is expected to help the valuation repair of the sector.
In combination with favorable policies, performance differentiation and long-term growth drivers, continue to recommend the trademarks of leading and financial management characteristic bonds:
1) the reform of the registration system is on the way to improve the marketization level of the capital market and bring more opportunities to the head investment banks with strong comprehensive ability and their direct investment and follow-up investment business. Market fluctuations will lead to significant differentiation of investment business, and the trading mode of head securities companies is expected to bring more stable performance.
2) although market fluctuations may lead to a temporary decline in the scale of public fund management business and consignment business in the wealth management industry chain, residents’ wealth continues to accumulate, the policy of “housing without speculation” is unswerving, and the growth trend of wealth management demand for maintaining and increasing residents’ wealth remains unchanged, which can still bring long-term growth contributions to securities companies.
Key recommendation
\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 030 Huatai Securities Co.Ltd(601688) China Industrial Securities Co.Ltd(601377) Orient Securities Company Limited(600958) 、 China Stock Market News 。
One week data
Market: this week, the CSI 300 fell 0.79%, the gem index rose 1.03%, the securities industry fell 1.67%, the insurance industry fell 3.56%, and Internet Finance fell 5.50%.
Brokerage: the average daily turnover of stock base in the market this week was 5708.4 billion yuan, up 24.92% month on month; The average daily turnover rate was 3.31%.
Credit: the reference market value of stock pledge in the market this week was 4.16 trillion yuan, the same as last week; The balance of the two financial institutions was 1.72 trillion yuan (as of February 25, 2022), an increase of 0.60% over last week.
Underwriting: this week, the amount of stock underwriting was 12.3 billion yuan, the amount of bond underwriting was 213.9 billion yuan, and 8 IPOs were approved by the CSRC.
Risk tips
The impact of policy introduction, international environment, epidemic development and market fluctuations on the industry exceeded expectations.
