Investment suggestions:
The securities industry rose due to the frequent occurrence of favorable policies. On March 16, the Finance Committee of the State Council held a meeting to study the current economic situation and capital market problems, releasing a strong policy signal. After the meeting, the CSRC made timely deployment and the regulators issued a number of policies. China settlement adjusted the proportion of the minimum settlement provision for stock business from 18% to 16%. The CSRC also urged relevant ministries and commissions to further promote the pilot of public offering REITs and promote a virtuous circle of investment and financing. Shanghai and Shenzhen stock exchanges also reduced and exempted relevant fees. At the same time, the China Banking and Insurance Regulatory Commission also requested to increase the issuance of equity asset management products. The frequent occurrence of favorable policies promotes the smooth operation of the capital market. Affected by this, many stocks in the securities industry performed well.
According to the annual report disclosed by China stock market news, the level of roe is far higher than that of peers. China stock market news, which has attracted much attention from the market, released its annual report. In 2021, it achieved a total operating revenue of 13.1 billion yuan, a year-on-year increase of + 59%, a net profit attributable to the parent company of 8.6 billion yuan, a year-on-year increase of + 79%, EPS of 0.83 yuan, and a weighted average roe of 22.11%, a year-on-year increase of + 4.2pct. Among them, the income from handling fees and commissions was 5.37 billion yuan, a year-on-year increase of 56%, far exceeding the average growth rate of the securities industry. Fund sales continued to develop, with a substantial increase in the retention scale, a continuous increase in market share, and a rapid growth in Internet fund sales business. The revenue from financial e-commerce services was 5.073 billion yuan, a year-on-year increase of + 71.23%. At present, the valuation of China stock market news has fallen to a nearly five-year low and has high configuration value. The allocation opportunities of the securities industry appear. In the early stage, affected by the overall decline of the market, the valuation of the securities industry also moved down rapidly. At present, the valuation of Pb is 1.48 times, which is in the low quantile in the past decade. With the continuous introduction of favorable policies and the smooth operation of the capital market, the securities industry ushered in allocation opportunities and gave the industry a “optimistic” rating.
Industry data:
(1) wealth management
Secondary market performance: stock market performance: as of March 18, the stock index fell compared with the beginning of the year. The gem index closed down 18.32%, the CSI 500 closed down 13.96%, the CSI 300 index closed down 13.65%, and the SSE 50 closed down 11.03%.
New investors: in February 2022, 1.4146 million new investors were added, with a month on month increase of + 3% and a year-on-year increase of + 6.82%; By the end of February, the number of investors was 200 million, a year-on-year increase of + 10.29%. Transaction volume: since 2022, the daily transaction volume has remained at the level of trillion yuan. Last week, the turnover was 5.62 trillion yuan, with an average daily turnover of 1.12 trillion yuan, a month on month increase of + 4.29%.
Two financial services: as of March 18, the balance of two financial services was 1.69 trillion yuan, down from – 7.97% at the end of the previous year. Among them, the balance of financing was 1.59 trillion yuan, up – 6.91% from the end of the previous year, and the balance of securities lending was 92.413 billion yuan, up – 23.08% from the end of the previous year.
Stock pledge business: the number and proportion of Pledged Shares in the market fell month on month. As of March 18, the number of Pledged Shares in the market was 416418 billion shares, down – 0.81% from the end of the previous year, accounting for 5.59% of the total share capital, down 0.08 percentage points from the end of the previous year.
(2) investment bank
According to the statistics of the listing date, the total scale of equity financing last week was 38.419 billion yuan, a month on month increase of + 85%, mainly due to the 12.514 billion yuan raised by convertible bonds. Among them, IPO raised 19.783 billion yuan and additional issuance raised 6.122 billion yuan.
(3) investment
Bond market performance: as of March 18, China bond – total price (gross value) index closed down 0.31% compared with last week. Commodities: as of March 11, the commodity index closed at 210.32, up 16.42% from the beginning of the year. Revenue voucher business: in January 2022, securities companies issued 3642 revenue vouchers in total, with a new issuance scale of 109465 billion yuan. Among them, 841 revenue vouchers were issued through the quotation system, with an issuance scale of 40.09 billion yuan; 2801 revenue vouchers were issued through the counter market, with an issuance scale of 69.375 billion yuan. By the end of the period, the surviving scale was 445.4 billion yuan and the surviving scale was 443.8 billion yuan.
OTC derivatives business: in January 2022, securities companies carried out OTC financial derivatives transactions, adding an initial nominal principal of 612449 billion yuan; By the end of the period, the total outstanding initial nominal principal of OTC financial derivatives was 2075678 billion yuan. In January 2022, the nominal principal of swap business increased by 329355 billion yuan, a month on month increase of – 24.98%; The new nominal principal of option business was 283094 billion yuan, a month on month increase of – 19.60%.
Risk tips:
The situation in Russia and Ukraine continues to deteriorate;
The secondary market fell sharply;
The epidemic situation exceeded expectations;
The capital market reform was not as expected.
