Market review: from February 28 to March 4, 2022, the Shanghai Composite Index fell 0.11%, the Shenzhen Component Index fell 2.93%, the non bank financial index fell 1.44%, of which the insurance index fell 2.05%, the brokerage index fell 1.23%, the diversified financial index fell 0.72%, and the hang Seng financial industry index fell 2.97%. Since the beginning of 2022, the Shanghai Composite Index has fallen by 5.3%, the Shenzhen composite index has fallen by 12.4%, and the non bank financial index has fallen by 10.5%, 5.2pct behind the Shanghai Composite Index and 1.9pct ahead of the Shenzhen composite index. This week, the top five stocks in the sector rose: Xishui Strong Year Co.Ltd Inner Mongolia(600291) (18.20%), Cnpc Capital Company Limited(000617) (7.23%), Rendong Holdings Co.Ltd(002647) (7.00%), Jingwei Textile Machinery Company Limited(000666) (4.95%), Gi Technologies Group Co.Ltd(300309) (2.78%).
Industry key data tracking: from February 28 to March 4, 2022, the daily average share based trading volume was 867 billion yuan. As of March 3, 2022, the balance of financed funds and bonds was 173265 billion yuan, accounting for 2.43% of the circulating market value of a shares. The trading volume of Liangrong accounts for 7.4% of the trading volume of a shares. As of March 4, 417.1 billion shares had been pledged, accounting for 5.21% of the total share capital, an increase of 0.01 PCT over last week; The total amount of market pledge is 3869 billion yuan, accounting for 4.11% of the market value of pledge; Equity financing raised 11 billion yuan of capital and 19.3 billion yuan of corporate bonds.
Main news of the industry: ① the 2022 government work report was released. The report puts forward economic development goals for 2022, including China’s GDP growth of about 5.5%; More than 11 million new jobs were created in cities and towns, and the urban survey unemployment rate was controlled within 5.5% throughout the year; Consumer prices rose by about 3%; The growth of residents’ income is basically synchronized with economic growth; Import and export remained stable and quality improved, and the balance of payments was basically balanced; Grain output remained above 1.3 trillion Jin. In the new year, the government’s work is mainly focused on stabilizing the macro-economic market and maintaining the economic operation within a reasonable range; Focus on stabilizing market players and ensuring employment, and strengthen the implementation of macro policies; We will unswervingly deepen reform and further stimulate market vitality and endogenous driving force for development. ② The China Banking and Insurance Regulatory Commission and the people’s Bank of China issued the notice on strengthening financial services for new citizens. Main contents: first, banks and insurance institutions are required to always adhere to the people-centered development idea and improve financial services in accordance with the principle of marketization; Second, clarify the scope of new citizens and encourage banking and insurance institutions to strengthen financial support for regions and industries that attract more new citizens; Third, support and encourage banking and insurance institutions to expand the supply of financial products and services and promote entrepreneurship and employment of new citizens; Fourth, support and encourage banking and insurance institutions to optimize housing financial services and help increase the supply of affordable housing.
Next week’s key issues: whether the stock based trading volume breaks trillion and the marginal improvement of the asset side of insurance stocks.
Securities: this week, political conflicts on the offshore margin continued to ferment, and the securities sector related to market risk appetite continued its decline last week, which was not as good as the market. However, we believe that at present, the market has paid more attention to the undervalued securities companies, and the northbound capital has been allocated to Huatai Securities Co.Ltd(601688) and other leading securities companies for several weeks. At present, the valuation of the securities sector deviates from the fundamentals. The valuation is low and has allocation value. Under the main line of “steady growth”, the repair market of the undervalued financial sector is still worth looking forward to. Suggestions: 1) for the leading securities companies with outstanding comprehensive strength and obvious moat advantages in the securities industry, Citic Securities Company Limited(600030) (a + H) and Huatai Securities Co.Ltd(601688) (a + H) are recommended; 2) For securities companies with differentiated competitiveness in the wealth management segment, China stock market news is recommended.
Insurance: the share price of insurance stocks fell slightly this week. The government work report clearly pointed out that we should continue to standardize the development of the third pillar endowment insurance. In the long run, the valuation of insurance stocks may continue to be repaired. It is recommended that leading insurance companies with a valuation at the bottom of history and a high dividend rate in the next year, Specific target suggestions: China’s property insurance with significantly narrowed risk exposure and AIA, which is at the forefront of channel transformation, have 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.
Investment suggestion: 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 Citic Securities Company Limited(600030) (a + H), Huatai Securities Co.Ltd(601688) (a + H), China stock market news.
Risk tip: the economic recovery is less than expected; The long-term interest rate was lower than expected.
