Securities: the average daily turnover of the market this week increased by 20 billion to 1.11 trillion month on month; The balance of the two financial institutions (3.17) continued to fall back to 1.69 trillion. At the meeting of the Finance Committee on Wednesday, vice premier Liu He made targeted policy arrangements on issues of market concern such as monetary policy, real estate, China concept shares, platform economic governance and the stability of Hong Kong’s financial market. He proposed “actively introduce policies conducive to the market and carefully introduce contractive policies”, “welcome long-term investors to increase their shareholding ratio”, and the positive signals released strongly boosted market confidence. “One bank, two sessions and one bureau” then made corresponding arrangements and put forward important measures such as “stabilizing the expectation of the real estate market”, “Solidly Promoting the reform of the comprehensive registration system”, “guiding insurance institutions to allocate more funds to equity assets”, “supporting wealth management companies to increase the proportion of equity products”, “encouraging listed companies to increase their holdings and repurchase efforts”, “guiding fund companies to purchase their own shares” and so on, Improve market expectations from the aspects of policy and liquidity. We believe that after a long period of adjustment, the valuation level of the core value target of the sector has dropped to a reasonably low level. At the time of the return of the performance focus in the annual report quarter, the investment value of the relevant target is prominent. Under the resonance between the policy and the market, the overall valuation of the sector is expected to rise significantly.
Insurance: listed insurance companies released the original premium data in February. On the whole, the life insurance and property insurance in February were better than those in January. The premiums of PICC Life Insurance, CPIC life insurance and New China Life Insurance Company Ltd(601336) February all achieved double-digit growth. The premium growth of Taiping Life Insurance returned to positive in February, and the decline of premiums in China Life Insurance Company Limited(601628) February was also narrower than that in January; The improvement of property insurance continued. The premiums of the four major insurance companies showed double-digit growth in February, which was better than that in January. However, considering the base factor, the multi-point outbreak of the national epidemic in March, the difference in the sales mode of life insurance and the passenger car data and supply chain in January and February, it is expected that the recovery progress and growth rate of property insurance will still be better than that of life insurance.
Sector performance: in the five trading days from March 14 to March 18, the non bank sector rose by 1.68% as a whole. According to the industry classification standard of Shenwan, the non bank ranked 2 / 31 of all industries; Among them, the securities sector rose 2.05% and the insurance sector rose 1.18%, both outperforming the Shanghai and Shenzhen 300 index (- 0.94%). In terms of stocks, the top five gainers for brokers are Guosheng Financial Holding Inc(002670) \ (1.60%), China Life Insurance Company Limited(601628) (1.46%), The People’S Insurance Company (Group) Of China Limited(601319) (0.89%), ST West Water (- 1.94%), New China Life Insurance Company Ltd(601336) (- 2.17%) China Pacific Insurance (Group) Co.Ltd(601601) （ -2.36%）。
Risk tips: macroeconomic downside risk, policy risk, market risk and liquidity risk.
