Core view
In 2021, the net profit of the securities industry increased by more than 20%, and investment banking, active management, asset management and consignment became highlights. This week, China Securities Association released the operating data of securities companies in 2021. The securities industry has experienced a “big year” market for three consecutive years. 1) In 2021, 140 securities companies in the industry realized an operating revenue of 502.41 billion yuan and a net profit of 191119 billion yuan, with a year-on-year increase of 12.03% and 21.32% respectively. By the end of 2021, the total assets of the securities industry were 10.59 trillion yuan and the net assets were 2.57 trillion yuan, an increase of 19.07% and 11.34% respectively over the end of the previous year. The equity multiplier (excluding customer assets) increased from 3.13 at the beginning of the year to 3.38. 2) With the continuous development and improvement of the registration system, the number of initial listings on the science and innovation board and the gem accounted for 75.05% of the number of IPOs in the whole year, and the financing amount accounted for 65.48% of the total IPO Financing in the whole year, indicating that the status of the two boards in the equity financing market has been further improved. 3) The scale of collective asset management represented by active management increased significantly by 112.52% to 3.28 trillion yuan. 4) The net income from agency sales of financial products was 20.69 billion yuan, a year-on-year increase of 53.96%, and the proportion of income in brokerage business income also increased to 13.39%, an increase of 3.02 percentage points.
The CSRC strengthened delisting supervision, and the five departments determined the detailed rules for practical operation. This week, the CSRC issued the guidance on improving the supervision of listed companies after delisting (Draft for comments). Based on the implementation of the requirements of the securities law, the guiding opinions protect the legitimate rights and interests of investors and better ensure the smooth implementation of normalized delisting. Relying on the existing agency share transfer system as the delisting sector, the guiding opinions optimize and improve the blocking points and risk points existing in the current practice in accordance with the principle of “smooth connection, appropriate supervision, risk prevention and joint force”, Promote the formation of a set of institutional arrangements in line with the functional positioning of the delisting sector and suitable for the characteristics of delisting companies. It mainly includes 1) strengthening the connection of delisting procedures; 2) Optimize the continuous supervision system of delisted companies; 3) Improve the risk prevention mechanism; 4) Improve the supervision system of delisted companies. The CSRC will revise and improve the guidance according to the public solicitation of opinions, and issue it for implementation after performing the procedures. We believe that the continuous improvement of the delisting system is expected to strengthen the value discovery function of A-Shares and improve the effectiveness of the market.
The pilot of exclusive commercial endowment insurance was expanded, and the third pillar system continued to be improved. This week, the China Banking and Insurance Regulatory Commission expanded the pilot scope of exclusive commercial pension insurance, allowed pension insurance companies to participate on the basis of the original six life insurance companies, and expanded the pilot areas from Zhejiang and Chongqing to the whole country. From the initial feedback of the pilot, by the end of January this year, nearly 50000 pieces had been underwritten, with a cumulative premium of 400 million yuan, including nearly 10000 people insured for new business types. We believe that it has significantly improved the activation of residents’ security awareness. In addition, the product requires that the premium accumulation period shall not be less than 5 years and the collection period shall not be less than 10 years. The cash value of short-term surrender is also constrained to guide residents to focus on the accumulation of long-term pension wealth. Overall, we believe that under the background of deepening population aging, this expansion can effectively share the pressure of the first and second pillars and promote the balanced construction of the three pillar system.
Investment proposal and investment object
In terms of securities companies, double click on market liquidity and policy, continue to be optimistic about the spring market of the sector, select high-quality targets with fundamentals, and maintain the optimistic rating of the industry. At present, it is still the first to promote the main line of derivatives, recommending Citic Securities Company Limited(600030) ( Citic Securities Company Limited(600030) , overweight), Huatai Securities Co.Ltd(601688) ( Huatai Securities Co.Ltd(601688) , overweight), and paying attention to China International Capital Corporation Limited(601995) (03908, not rated); Secondly, we should continue to pay attention to the main line of public offering and recommend Gf Securities Co.Ltd(000776) ( Gf Securities Co.Ltd(000776) , buy) and China Industrial Securities Co.Ltd(601377) ( China Industrial Securities Co.Ltd(601377) , increase Holdings).
In terms of diversified finance, A-Shares recommend the leading lessee of aerial working platform (AWP) Zhejiang Huatie Emergency Equipment Science & Technology Co.Ltd(603300) ( Zhejiang Huatie Emergency Equipment Science & Technology Co.Ltd(603300) , buy); Hong Kong stocks recommend Far East Hongxin (03360, buy), a leader in financial leasing, and BOC aviation leasing (02588, overweight), a leader in Asia Pacific Aircraft leasing; US stocks recommend Noah wealth (Noah. N, buy), a third-party high net worth financial management leader.
In terms of insurance, the scale of the team has gradually bottomed out, the production capacity of the remaining team has been improved, and it is expected to start a good start gradually; The inflection point of property insurance has arrived, and we look forward to the synchronous improvement of premium and cor; The outlook of the equity market is optimistic, and the liberalization of the investment ceiling adds upward flexibility. We are optimistic about large insurance companies that actively promote reform and enhance production capacity through science and technology empowerment and cross sales, and maintain the optimistic rating of the industry. Follow up suggestions focus on Ping An Insurance (Group) Company Of China Ltd(601318) ( Ping An Insurance (Group) Company Of China Ltd(601318) , buy), China Pacific Insurance (Group) Co.Ltd(601601) ( China Pacific Insurance (Group) Co.Ltd(601601) , not rated), AIA (01299, not rated).
Risk tips
The suppression of systemic risk on the performance and valuation of securities business; Stricter supervision than expected;
The long-term interest rate is lower than expected; Related policy risks in diversified financial field.
