Market review:
From December 6, 2021 to closing on December 10, 2021, the non bank financial sector rose 3.71%, the CSI 300 index rose 3.14%, and the non bank financial sector outperformed the CSI 300 index by 0.57pct. From the perspective of plate ranking, compared with other plates, it ranks sixth among the 28 plates of Shenwan. From the perspective of Pb valuation, the non bank financial industry rose to 1.51 times. Sub sector Pb is respectively 1.75 for securities, 1.20 for insurance and 1.09 for diversified finance. The weekly gains and losses of sub sectors were 3.66% for securities, 4.22% for insurance and 1.76% for diversified finance.
The top five stock price increases were Chinalin Securities Co.Ltd(002945) , China Industrial Securities Co.Ltd(601377) , China Greatwall Securities Co.Ltd(002939) , CITIC shares, China Securities Co.Ltd(601066) .
The top five stock price declines were Guangzhou Yuexiu Financial Holdings Group Co.Ltd(000987) , Zheshang Securities Co.Ltd(601878) , Gf Securities Co.Ltd(000776) , Soochow Securities Co.Ltd(601555) , Northeast Securities Co.Ltd(000686) . Talk every Monday:
Central economic work conference set the tone of “comprehensive registration system”
From December 8 to 10, the central economic work conference was held in Beijing. The meeting proposed that the reform and opening-up policy should activate the driving force of development, pay close attention to the pilot of comprehensive reform of market-oriented allocation of factors, and fully implement the stock issuance registration system. Led by the reform of the registration system, the basic systems such as issuance, listing, trading, delisting and continuous supervision have been systematically improved. A good start has been made in the high standard three-dimensional punishment of the interconnection of administrative punishment, civil compensation and criminal accountability: the landing of the first civil compensation lawsuit of the special representative of securities disputes has solved the dilemma of difficult prosecution and expensive rights protection of small and medium-sized investors, greatly reduced the cost of rights protection, helped investors obtain compensation fairly and efficiently, and properly and quickly resolved group disputes A beneficial exploration to improve the efficiency of market governance.
The number of foreign securities companies increased
Several foreign-funded institutions have submitted applications, and foreign-funded or joint venture securities companies are lining up to enter the site. Since 2018, a number of foreign-funded institutions have submitted applications to the CSRC for the establishment of foreign-funded securities companies or holding joint venture securities companies. On March 13, 2020, the CSRC made it clear that the restriction on the proportion of foreign shares of securities companies will be cancelled from April 1, 2020. At present, there are 8 foreign holding securities companies. A number of foreign-funded institutions have lined up at the CSRC for approval, including Standard Chartered securities (China) Co., Ltd., Qingdao Yicai Securities Co., Ltd., faba securities (China) Co., Ltd., Rixing Securities Co., Ltd., etc.
At the initial stage of development, it is not easy to participate in China’s market competition. First, winning the controlling stake is only the beginning. At present, many institutions are difficult to win the full license in the short term. Although different from the previous joint venture securities companies can only obtain a single investment bank license, at present, a number of new foreign securities companies have 3-4 business licenses. However, 3-4 business licenses are not enough to support the all-round development of the business, so there is a way for foreign securities companies to further apply for licenses and provide customers with more comprehensive products and services. Second, the customer base of most foreign securities companies is generally weak. These outlets have high cost and large investment, which is difficult to form scale effect. Therefore, major big cities set up boutique outlets and wealth management centers to avoid direct competition with local securities companies. At this stage, there is a huge difference in customer resources between them and the local securities industry, which will not change the competition pattern of Chinese securities companies for the time being. Third, although foreign securities companies have great advantages in derivatives business, they are difficult to carry out innovative business without the basic support of classified rating results.
Some businesses have great advantages, and the transformation of Chinese securities companies is imperative. Foreign securities companies will have advantages in such segments as wealth management business, investment banking business and derivatives business. Chinese securities companies should consolidate the competitiveness of traditional business, strengthen the ability of innovative business services, and promote the transformation and upgrading of business model, so as not to lose their advantages in the competition.
Investment strategy and key recommendations: we believe that the securities sector will show a shock upward trend. The central economic work conference named the “registration system”. The comprehensive registration system will bring double improvements in business volume and efficiency, help the development of investment banking business of securities companies, add comprehensive standard reduction and improve the overall valuation level of securities companies. We recommend investors to pay attention to East Money Information Co.Ltd(300059) , Orient Securities Company Limited(600958) and other wealth management transformation targets and Citic Securities Company Limited(600030) , Gf Securities Co.Ltd(000776) and other head coupon trademarks.
Risk warning: the risk of strengthening capital market supervision; The risk of intensified market competition; The epidemic control was less than expected.
