Market Review
Last week (3.21-3.25), the securities, insurance and diversified financial sectors fell 4.0%, 1.1% and 0.9% respectively. The Shanghai Composite Index, Shenzhen Composite Index and gem fell 1.2%, 2.1% and 2.8% respectively, and the Shanghai and Shenzhen 300 fell 2.1%. The excess returns of securities, insurance and diversified financial sectors relative to Shanghai and Shenzhen 300 were - 1.9%, 1.1% and 1.3% respectively. Since the beginning of 2022, securities, insurance and diversified finance sectors have fallen by 21.0%, 7.4% and 9.8% respectively.
Core view
Securities: with high growth and ownership α Wealth management securities companies such as CICC, gf and Dongfang led the increase. The asset quality and profitability of securities companies have been continuously improved, and the growth given by asset light business is still underestimated by the market. From the perspective of valuation, the valuation of Pb in the industry has reached the low point since February 2019. Securities companies have reached the configurable range in terms of growth and valuation. If last week becomes the "policy bottom" of the market, the market bottom will also come. When market confidence improves, the scale of new public offerings will increase, the targets related to wealth management are expected to usher in an inflection point, and the improvement of trading volume and fund sales will promote the performance expectations of securities companies;
Insurance: liability side: according to the February data released by various insurance companies, the liability side of the industry is still not improving. However, there are still positive factors in the industry: the improvement of nbvm in bancassurance channel and the high increase of premium, as well as the sales boom of increased lifetime life, which is expected to alleviate the pessimistic expectation of the industry. Asset side: according to the social finance data in February, there is still the expectation of interest rate and reserve requirement reduction in the follow-up. However, under the background of credit expansion, the possibility of significant decline of long-term interest rate is low.
Liquidity: last week's net investment in reverse repo was 50 billion.
Investment advice
Securities companies participating in public funds or related targets with strong asset management ability include Orient Securities Company Limited(600958) , China stock market news with excellent fund consignment ability and large holdings, and China International Capital Corporation Limited(601995) , with outstanding institutional business ability. Ping An Insurance (Group) Company Of China Ltd(601318) , which is related to the synergy of "Bank + insurance" group.
Risk tips
The covid-19 epidemic worsened, China's economic pressure increased, and the decline of long-term interest rate exceeded expectations.
