Yi Huiman, chairman of the CSRC: solidly promote the reform of the whole market registration system. In an interview with Xinhua news agency, Yi Huiman, chairman of the CSRC, said that the work of the CSRC will focus on the two keywords of “stability first” and “tackling key problems in reform”. We are speeding up the formulation of the reform plan of the market registration system, taking multiple measures to promote the smooth operation of the market, and resolutely prevent big ups and downs and urgent ups and downs. Key statements include: “three entry”: 1) fully implement the stock issuance registration system, 2) strengthen the interconnection of domestic and foreign markets, accelerate the reform of overseas listing filing system, 3) continue to maintain the normalization of IPO and refinancing, adhere to the “hard technology” positioning of the science and innovation board, build the gem and run the Beijing stock exchange well; Set up “traffic lights” for capital to form a strong joint force between industry supervision and securities supervision; The smooth operation of the market is “changed”, not “guarded”. In this interview, Yi Huiman pointed out the work priorities of the CSRC in 2022. In the future, we will comprehensively deepen the reform and opening up of the capital market under the guidance of the reform of the whole market registration system. The reform of the whole market registration system indicates that the reform has entered the deep-water area, focusing on the investment banking business of securities companies.
Multiple departments shall standardize the online marketing of financial products and clarify the online marketing publicity content of financial institutions. The people’s Bank of China, together with relevant departments, drafted the administrative measures for online marketing of financial products and solicited public opinions. Its main contents include: 1) it is prohibited to market private placement financial products to unspecified objects through the Internet, 2) harassing marketing and nested sales are not allowed, 3) network marketing personnel should have relevant qualifications, and 4) operators of third-party Internet platforms are not allowed to participate in the sales business of financial products without approval. The measures focus on the marketing of illegal financial products, false and misleading publicity. The implementation of the measures will help to standardize the online marketing activities of financial products and protect the legitimate rights and interests of financial consumers.
Phase II of the second generation of compensation was fully implemented, and the impact of capital adequacy of listed insurance enterprises was limited. The second generation phase II project will be fully implemented in the first quarter of 2022, and the transition period will be fully in place by 2025 at the latest. Rule II still guides insurance to return to the source of protection, improves the measurement method of interest rate risk, and adds serious disease deterioration factors. In addition, the actual capital and the minimum capital are further improved, the long-term stock investment with control is fully deducted, the expected future surplus of the long-term life insurance policy is included in the core capital or subsidiary capital respectively according to the remaining period of the policy, and the minimum capital is measured by penetrating the investment in insurance enterprises to the end. We believe that the implementation of rule II will bring certain downward pressure on the solvency adequacy ratio, but the overall impact of capital adequacy of listed insurance enterprises is limited. After adjustment, they can still maintain the solvency adequacy ratio level of more than 150%, but in contrast, small and medium-sized insurance enterprises may face capital replenishment pressure
Investment proposal and investment object
In terms of securities companies, double click on market liquidity and policy, continue to be optimistic about the cross year spring market of the sector, select high-quality targets with fundamentals, and maintain the optimistic rating of the industry. Derivatives mainline recommends Citic Securities Company Limited(600030) (600030, overweight), and it is recommended to pay attention to China International Capital Corporation Limited(601995) (03908, not rated); The main line of public offering recommends Gf Securities Co.Ltd(000776) (000776, buy), China Industrial Securities Co.Ltd(601377) (601377, overweight), and it is recommended to pay attention to China Greatwall Securities Co.Ltd(002939) (002939, not rated).
In terms of diversified finance, Hong Kong stocks recommend Far East Hongxin (03360, buy), a leader in financial leasing, and Hong Kong Stock Exchange (00388, overweight), a leader in global exchanges; U.S. stocks recommend BlackRock (BLK. N, overweight), a global asset management leader, and Noah wealth (Noah. N, buy), a third-party high net worth asset management leader. At the same time, it is recommended to pay attention to futu Holdings (futu. O, buy) and tiger securities (TIGR. O, buy), which are high-growth Hong Kong and U.S. stock brokers with increasingly prominent bottom layout opportunities.
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 with 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) (601318, buy), China Pacific Insurance (Group) Co.Ltd(601601) (601601, not rated), AIA (01299, not rated).
Risk statement
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; Policy risks related to diversified financial field
