Market review: from March 14 to 18, 2022, the Shanghai Composite Index fell by 1.8%, the Shenzhen Component Index fell by 1.0%, and the non bank financial index rose by 1.7%, including the insurance index rose by 1.2%, the brokerage index rose by 2.0%, the diversified financial index rose by 0.5%, and the Hang Seng financial industry index rose by 3.8%. Since the beginning of 2022, the Shanghai Composite Index has fallen by 10.7%, the Shenzhen composite index has fallen by 17.0%, and the non bank financial index has fallen by 14.0%, 3.3pct behind the Shanghai Composite Index and 3.0pct ahead of the Shenzhen composite index. The top five stocks in this week’s sector growth: Guosheng Financial Holding Inc(002670) (14.85%), Boc International (China) Co.Ltd(601696) (13.67%), Polaris Bay Group Co.Ltd(600155) (13.25%), Shanghai Chinafortune Co.Ltd(600621) (11.52%), Gi Technologies Group Co.Ltd(300309) (9.66%).
Industry key data tracking: the average daily trading volume of the stock base this week was 1217.6 billion yuan. As of March 17, the balance of margin trading and securities lending was 1686235 billion yuan, accounting for 2.56% of the circulating market value of a shares. The trading volume of Liangrong accounts for 7.1% of the trading volume of a shares. As of March 18, 416.4 billion shares had been pledged, accounting for 5.20% of the total share capital, basically the same as last week; The total amount of market pledge is 3678.8 billion yuan, accounting for 4.12% of the market value of pledge; The capital raised by equity financing was 14.3 billion yuan and the amount of corporate bonds issued was 57 billion yuan.
Major industry news: ① Liu he presided over the meeting of the financial committee of the State Council to study the current situation. Recently, the financial stability and Development Commission of the State Council held a special meeting to study the current economic situation and capital market issues. The meeting pointed out that under the current complex situation, the most critical thing is to adhere to development as the party’s top priority in governing and rejuvenating the country, focus on economic construction, deepen reform and expand opening-up, adhere to the principles of marketization and rule of law, adhere to the “two unwavering”, earnestly protect property rights, fully implement the spirit of the central economic work conference and the deployment of the national “two sessions”, and coordinate epidemic prevention and control and economic and social development, Keep the economy running within a reasonable range and keep the capital market running smoothly. ② The cbcirc held a special meeting to convey, study and implement the spirit of the meeting of the financial commission of the State Council. The meeting pointed out that the CBRC system should deeply understand the great significance of the “two establishment”, resolutely achieve the “two maintenance”, resolutely implement the spirit of the central economic work conference and the deployment of the national “two sessions”, shoulder the responsibility of stabilizing the macro economy, adhere to development as the first priority of the party in power and rejuvenating the country, focus on economic construction, deepen reform, expand opening up, and adhere to the principles of marketization and rule of law, Adhere to the “two unwavering”, earnestly protect property rights, coordinate epidemic prevention and control and economic and social development, continuously improve the forward-looking effectiveness of supervision, deeply promote the reform and opening up of the banking and insurance industry, strive to promote high-quality economic and social development, and firmly hold the bottom line of no systemic financial risks.
Key issues for next week: stock based turnover in A-share market and marginal improvement of asset side of insurance shares.
Securities: this week, affected by the special meeting of the financial stability and Development Commission of the State Council and the positive impact of the CSRC on conveying, studying and implementing the spirit of the national two sessions, the securities sector rebounded sharply and outperformed the market, with obvious excess returns. We believe that the current valuation of the securities sector deviates from the fundamentals, the valuation is at a historical low, and the repair of the undervalued financial sector under the main line of “steady growth” is still worth looking forward to. It is suggested to pay attention to two main lines: 1) the leading securities companies with outstanding comprehensive strength and gradually increasing market share in the securities sector are recommended Citic Securities Company Limited(600030) (a + H), Huatai Securities Co.Ltd(601688) (a + H); 2) In the era of wealth management, securities companies with differentiated competitiveness in the field of Internet wealth management and Gf Securities Co.Ltd(000776) , which benefit from the rapid development of fund subsidiaries, are recommended.
From the point of view of this week’s announcement, the growth rate of life insurance companies has been better than expected, and the valuation of property insurance companies has been improved. In February, the growth rate of property insurance companies has been improved, and the valuation of property insurance companies is still better than expected. It is recommended to recommend leading insurance companies with a valuation at the bottom of history and a high dividend rate in the next year. The specific target recommendations are focused on: China’s property insurance with significantly narrowed risk exposure and AIA, which is at the forefront of channel transformation, and Ping An Insurance (Group) Company Of China Ltd(601318) (a + H) and China Pacific Insurance (Group) Co.Ltd(601601) (a + H) with multi line layout of health and elderly care industry for a long time.
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), Gf Securities Co.Ltd(000776) .
Risk tip: the economic recovery is less than expected; The long-term interest rate was lower than expected.
