Market review: this week, both Shanghai and Shenzhen stock markets rose, and the increase of brokerage index was higher than the market. The Shanghai Composite Index rose 1.6%, the Shenzhen Component Index rose 1.5%, the non bank financial index rose 3.7%, of which the insurance index rose 4.2%, the brokerage index rose 3.7%, the diversified financial index rose 1.8%, and the Hang Seng financial industry index rose 1.3%. Since the beginning of the year, the Shanghai Composite Index has risen by 5.6%, the Shenzhen composite index has risen by 4.4%, and the non bank financial index has fallen by 17.1%, 22.7pct behind the Shanghai Composite Index and 21.5pct behind the Shenzhen composite index. In terms of individual stocks, This week, the top five stocks in the sector rose: Chinalin Securities Co.Ltd(002945) (29.77%), Gi Technologies Group Co.Ltd(300309) (12.97%), China Industrial Securities Co.Ltd(601377) (10.00%), Caida Securities Co.Ltd(600906) (7.69%), China Greatwall Securities Co.Ltd(002939) (7.06%).
Insurance industry: the opening of the insurance industry to the outside world has been further implemented, and the long-term investment value of insurance has become prominent
The asset management scale of insurance asset management company is huge, and the improvement of system is good for its long-term and stable investment. The China Banking and Insurance Regulatory Commission issued the regulations on the management of insurance asset management companies (Draft for comments). Previously, the China Banking and Insurance Regulatory Commission issued a number of policies to optimize the allocation of insurance assets Once again, it has been implemented to the insurance asset management company, and the chapter structure and terms of the previous provisions have been greatly revised. Insurance asset management companies manage a large scale of insurance assets, and their standardized management is an important guarantee to promote their steady investment. The new administrative regulations further implement the opening-up of the insurance industry: (1) core changes: the upper limit of the shareholding ratio of foreign insurance companies is no longer limited, but the total shareholding ratio of domestic and foreign capital needs to be maintained at more than 50% (2) the insurance industry has increased its opening-up measures in recent years. This new regulation is a further implementation of the opening-up of the insurance industry. (3) Under the low interest rate environment, foreign insurance asset management has rich experience in asset allocation. Since March this year, the long-term interest rate has fluctuated downward. Due to the long-term low interest rate environment experienced by developed countries such as the United States, Japan, Germany and the United Kingdom, they have rich experience in asset allocation. Increasing the share proportion of foreign capital is good for insurance capital to learn from experience to improve profitability. The recommended risk exposure has increased significantly AIA, which is at the forefront of narrowing China’s property insurance and channel transformation, has long recommended Ping An Insurance (Group) Company Of China Ltd(601318) (a + H) and China Pacific Insurance (Group) Co.Ltd(601601) (a + H) for multi line layout of health and elderly care industry.
Securities industry: affected by the new derivatives regulations, the new business scale of securities companies has decreased, and they are optimistic about the configuration value of securities companies at the end of the year
The government’s supervision on the revenue swap business and OTC financial derivatives business is gradually strengthened, and the business standardization of securities companies is improved, which is conducive to the long-term development of OTC derivatives business and the agglomeration of market share to the leader. In October 2021, the initial nominal principal of OTC financial derivatives business of securities companies increased by 609.605 billion yuan, a decrease of 245.848 billion yuan compared with September, a month on month decrease of 28.96%; Among them, the initial nominal principal of OTC option business increased by 250.596 billion yuan, a decrease of 122.128 billion yuan compared with September, a month on month decrease of 32.77%; The initial nominal principal of income swap business increased by 359.009 billion yuan, a decrease of 126.42 billion yuan compared with September, a month on month decrease of 26.04%. From the perspective of concentration, the concentration of new derivatives transactions outside the securities market decreased in October, but on the whole, it still reflects the headedness trend. From the perspective of counterparties, the proportion of counterparties of option contract securities companies increased significantly, and the proportion almost doubled. In terms of the type of subject matter, the organization as a whole is more optimistic about the A-share market, and the proportion of investment in partial stock subject matter has increased. From the company level, leading securities companies and some securities companies with differentiated competitiveness are expected to obtain excess returns. It is suggested to pay attention to two main lines: 1) for the leading securities companies with outstanding comprehensive strength and obvious moat advantages in the securities industry, recommend Huatai Securities Co.Ltd(601688) (a + H); 2) for the securities companies with differentiated competitiveness in the era of wealth management, recommend East Money Information Co.Ltd(300059) and pay attention to Gf Securities Co.Ltd(000776) .
Investment suggestions: Insurance: recommend China property insurance, AIA, Ping An Insurance (Group) Company Of China Ltd(601318) (a + H), China Pacific Insurance (Group) Co.Ltd(601601) (a + H); securities companies: recommend Huatai Securities Co.Ltd(601688) (a + H), East Money Information Co.Ltd(300059) , pay attention to Gf Securities Co.Ltd(000776) .
Risk tip: the economic recovery is less than expected; The long-term interest rate was lower than expected.
