Key investment points
Daily data tracking
Three major indexes: the Shanghai index closed up 0.98%, the Shenzhen Component Index closed up 1.23%, and the gem index closed up 1.01%
Shenwanyi sector: leisure services, medicine, biology and household appliances rose; Defense industry, electrical equipment, nonferrous metals
Concept sector: medical beauty, household light industry and micro led concept rose; UHV, chemical raw materials, lithium electrolyte
Transaction and northbound capital: the transaction between the two cities was about 1264 billion yuan, an increase over the previous trading day, and the net inflow of northbound capital was about 21.656 billion yuan
Hot spot tracking: Comments on securities companies
On December 6, the people’s Bank of China decided to reduce the deposit reserve ratio of financial institutions by 0.5 percentage points on December 15, 2021. This RRR reduction is a comprehensive RRR reduction, and the loose liquidity brought by the RRR reduction benefits the brokerage sector as a whole. At the same time, the regulations on the approval of insurance funds to participate in securities lending were issued to effectively solve the problem of insufficient securities sources. Under the multiple favorable policies, the brokerage sector ushered in a sharp rise.
As the liquidity easing brought about by the RRR reduction has Matthew effect, the new regulations on the approval of insurance funds to participate in securities lending require that only class A and above securities companies can participate. These two policies are relatively more favorable for securities companies with strong institutional business and large scale. Therefore, the short-term upward effect of large market capitalization securities companies is obvious. However, it takes time to realize the performance related to wealth management investment, so it is not obviously reflected in the stock price in the short term.
On the whole, we believe that the sluggish performance of some companies in the securities business sector this year has a great relationship with the tightening of regulatory policies and the gradual standardization of the industry. The business adjustment and rectification brought by regulation will have a certain negative impact on the performance of securities business. However, in the long run, under the background of a series of regulatory and favorable policies, the valuation logic of the securities sector has changed fundamentally from cycle to growth. The superimposed sector is at a low valuation level and has a large room for rise.
Therefore, we are still optimistic about the rising trend of the brokerage sector for a long time, continue to focus on the companies with differentiated management in the main line of wealth management investment and the head companies with strong business capacity and comprehensive strength, obvious moat advantages and steady development of OTC derivatives business, and look forward to the rise of share price and valuation.
Risk tip: the stock market is risky and investment should be cautious
