1、 Event overview
The central economic work conference was held in Beijing from December 8 to 10. In terms of financial reform, the meeting required that we should pay close attention to the pilot of comprehensive reform of market-oriented allocation of factors and fully implement the stock issuance registration system.
2、 Analysis and judgment
The next step in financial reform is to promote the implementation of the comprehensive registration system
Looking at the specific contents of the central economic work conference from the two dimensions of financial reform and financial policy, financial reform is the next city.
From the perspective of financial reform: the reform and opening-up policy should activate the driving force of development. We should pay close attention to the pilot of comprehensive reform of market-oriented allocation of factors, and fully implement the stock issuance registration system.
From the perspective of financial policy: macro policy should be stable and effective, and we should continue to implement active fiscal policy and prudent monetary policy. Prudent monetary policy should be flexible and appropriate, and maintain reasonable and abundant liquidity.
Financial IT companies are expected to continue to benefit from the recent intensive introduction of financial reform policies
From the comprehensive registration system mentioned in the central economic work conference, combined with the intensive reform policies (participation of venture capital in securities lending business, introduction of individual stock options, optimization of securities account management, etc.) issued from December 3 to 5, we can see that the process of China’s capital market reform continues to accelerate, and expanding financial opening and connecting with the international mature capital market will be an important direction of financial reform.
From the perspective of capital market: the continuous promotion of financial reform is expected to promote the long-term healthy and upward development of the market. At present, China’s capital market has shown two major trends: the continuous rise of market activity and the “specialization” of investment management. Since 21 years ago, the average daily turnover of A-Shares has reached 1.06 trillion, a year-on-year increase of 24%; The management scale of public funds was 24.4 trillion, a year-on-year increase of 33%. In line with the general trend of wealth management transformation, financial IT companies are expected to get rid of the variety attribute of pure bull market elasticity and step out of the long-term growth trend α quotation.
For financial IT manufacturers: financial reform policies are intensively issued, institutional changes and tool innovation are accelerating, and financial institutions need to continuously respond and deeply understand the changes brought by the reform. Financial reform is the most direct benefit for financial IT system construction manufacturers. System reform and tool innovation will directly create corresponding IT system transformation and upgrading needs. Securities it leaders who can deeply understand financial innovation and quickly respond to new needs will fully benefit. Reviewing the previous major reforms, the establishment of the science and innovation board, the gem registration system and the issuance of REITs have created an average of millions of it transformation and upgrading needs for each institution.
3、 Investment advice
The continuous promotion of financial reform is expected to continue to promote the healthy and upward development of China’s capital market. Under the background of the current average daily trading volume of the capital market breaking trillion and the intensive introduction of financial reform and financial innovation policies, financial IT companies are expected to continue to benefit. It is recommended to pay attention to East Money Information Co.Ltd(300059) , Hundsun Technologies Inc(600570) , Shenzhen Kingdom Sci-Tech.Ltd(600446) , Fujian Apex Software Co.Ltd(603383) , etc.
4、 Risk tips
The promotion of financial reform is less than expected, the activity of the capital market is less than expected, the industry competition is intensified, and the customer self-study is strengthened
