This week, the brokerage sector has significantly warmed up. The continuous and orderly promotion of capital market reform policies and the continuous growth trend of residents’ wealth management demand remain unchanged. Therefore, we continue to be optimistic about the growth of the securities industry. This week’s special meeting of the finance committee set the tone, which not only strengthened the signal of steady growth, but also is expected to accelerate the introduction of favorable policies and catalyze the securities sector. Continue to recommend stocks with excellent fundamentals among leading and financial management characteristic securities companies, with emphasis on Citic Securities Company Limited(600030) , Huatai Securities Co.Ltd(601688) , China Industrial Securities Co.Ltd(601377) , Orient Securities Company Limited(600958) , China stock market news.
Industry perspective
A number of policies have been issued one after another, which is expected to continue to catalyze the recovery of the sector. This week’s meeting of the financial committee continued to convey the signal of stable growth, further strengthened the expectation of reducing reserve requirements and interest rates, and brought about a turning point in the valuation of the securities sector. CSDCC reduced the payment proportion of settlement provisions for stock business, released some dividends of the reform of goods and bank in advance, reduced the cost of market funds and improved the capital utilization efficiency of securities companies. The central bank approved the establishment of CITIC financial holding and Beijing Financial Holding, and said it would steadily and orderly promote other qualified enterprises to apply for the establishment of financial holding companies. Financial holding companies are conducive to the synergy of their financial companies and enterprises and the risk management of financial companies. The two financial holdings adopt different models, which can form a demonstration effect on the follow-up application and the group waiting for approval. After the meeting of the Financial Committee stressed that “actively introducing policies beneficial to the market”, a number of policies were introduced one after another, which not only made the industry enjoy dividends in advance, but also helped to improve the market’s expectation of the implementation of more subsequent policies, and catalysed the upward valuation of the market and industry.
In combination with favorable policies, performance differentiation and long-term growth drivers, continue to recommend the trademarks of leading and financial management characteristic bonds:
1) the reform of the registration system is imminent, the supporting board transfer system is being supplemented, and the delisting system is expected to be gradually improved, so as to improve the marketization level of the capital market and bring more opportunities to the head investment banks with strong comprehensive ability and their direct investment and follow-up business. Market fluctuations will lead to significant differentiation of investment business, and the trading mode of head securities companies is expected to bring more stable performance.
2) although market fluctuations may lead to a temporary decline in the scale of public fund management business and consignment business in the wealth management industry chain, residents’ wealth continues to accumulate, the policy of “housing without speculation” is unswerving, and the growth trend of wealth management demand for maintaining and increasing residents’ wealth remains unchanged, which can still bring long-term growth contributions to securities companies.
Key recommendation
\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 030 Huatai Securities Co.Ltd(601688) China Industrial Securities Co.Ltd(601377) 、 Orient Securities Company Limited(600958) 、 China Stock Market News 。
One week data
Market: this week, the CSI 300 fell 0.94%, the gem index rose 1.81%, the securities industry rose 2.05%, the insurance industry rose 1.18%, and Internet Finance rose 0.15%.
Brokerage: the average daily turnover of stock base in the market this week was 1218.1 billion yuan, up 3.25% month on month; The average daily turnover rate was 3.40%.
Credit: this week’s two-year financial balance was 1.69 trillion yuan (as of March 17, 2022), down 1.24% from last week.
Underwriting: this week, the amount of stock underwriting was 25.4 billion yuan, the amount of bond underwriting was 152.7 billion yuan, and 8 IPOs were approved by the CSRC.
Risk tips
The impact of policy introduction, international environment, epidemic development and market fluctuations on the industry exceeded expectations.
