Key investment points:
CSRC: support securities companies to expand their capital strength and expand their business in Hong Kong in an orderly manner according to law. Recently, the China Securities Regulatory Commission has intensively announced its replies to some suggestions and proposals made at the fourth session of the 13th National People’s Congress and the fourth session of the 13th National Committee of the Chinese people’s Political Consultative Conference. In the proposal on establishing a recognized cross-border business brokerage system to maintain national financial security (hereinafter referred to as the proposal), One suggestion is to “focus on cultivating and supporting state-owned securities institutions to increase capital investment, make up the capital gap compared with foreign-funded institutions, strengthen corporate governance through deepening reform, achieve excellence, strength and expansion, and improve the core competitiveness of trading, market making, trusteeship, master brokerage and risk control”. We believe that the new securities law cancels the examination and approval of securities companies’ establishment, acquisition and equity participation in securities business institutions abroad and changes them to filing management, promotes simplification of administration and decentralization, and facilitates securities companies to expand international business according to law.
The asset management of securities companies has made efforts to actively manage, and the scale of the top 20 has exceeded 5.2 trillion yuan. On February 23, the China Foundation Association released the average monthly scale of asset management (update), which showed that the asset management scale of the top 20 securities companies totaled 6.15 trillion yuan in the fourth quarter of 2021. Among them, Citic Securities Company Limited(600030) is far ahead of China International Capital Corporation Limited(601995) nearly 300 billion yuan, with an average monthly asset management scale of 1.17 trillion yuan Boc International (China) Co.Ltd(601696) with 5977 The scale of 3.8 billion yuan surpassed the investment management and ranked third The average monthly asset management scale of Boc International (China) Co.Ltd(601696) , Citic Securities Company Limited(600030) increased by more than 100 billion yuan compared with the third quarter of last year, an increase of 124.56 billion yuan and 122.5 billion yuan respectively 8.9 billion yuan. It can be seen that the asset management scale of head securities companies has obvious advantages, and most securities companies vigorously develop asset management business. We believe that asset management strength is one of the important manifestations of the wealth management ability of securities companies. At present, the wealth management transformation of securities companies has begun to take effect.
Investment suggestion: the securities sector adheres to the valuation logic from cycle to growth. With the deepening reform of the capital market, the sector may welcome valuation repair. Recommend securities companies to continuously improve the capital structure of the bear market; Recommend companies with flexible performance in asset management and wealth management, such as Orient Securities Company Limited(600958) , China Industrial Securities Co.Ltd(601377) ; It is suggested to pay attention to the progress of Beijing Compass Technology Development Co.Ltd(300803) becoming an investor in the bankruptcy reorganization of wechat securities; It is recommended to pay attention to China Securities Co.Ltd(601066) (H shares), and the insurance sector is recommended to pay attention to Ping An Insurance (Group) Company Of China Ltd(601318) .
Risk tips: macroeconomic growth is lower than expected, market fluctuations and policy changes.
