Key points
Market review: from March 21 to 25, 2022, the Shanghai Composite Index fell 1.2%, the Shenzhen Component Index fell 2.1%, the non bank financial index fell 3.0%, of which the insurance index fell 1.1%, the brokerage index fell 4.0%, the diversified financial index fell 0.9%, and the Hang Seng financial industry index rose 0.1%. Since the beginning of 2022, the Shanghai Composite Index has fallen by 11.7%, the Shenzhen composite index has fallen by 18.7%, and the non bank financial index has fallen by 16.6%, 4.8pct behind the Shanghai Composite Index and 2.2pct ahead of the Shenzhen composite index. The top five stocks in this week’s sector: AVIC capital (2.80%), Guangdong Golden Dragon Development Inc(000712) (2.66%), Nanhua Futures Co.Ltd(603093) (2.47%), Hongta Securities Co.Ltd(601236) (1.80%), Jilin Aodong Pharmaceutical Group Co.Ltd(000623) (0.64%).
Industry key data tracking: the average daily trading volume of the stock base this week was 1035 billion yuan. As of March 24, the balance of margin trading and securities lending was 1684925 billion yuan, accounting for 2.52% of the circulating market value of a shares. The trading volume of Liangrong accounts for 7.3% of the trading volume of a shares. As of March 25, 416.2 billion shares had been pledged, accounting for 5.19% of the total share capital, down 0.01 PCT from last week; The total amount of market pledge is 3619.8 billion yuan, accounting for 4.10% of the market value of pledge; Equity financing raised 29.8 billion yuan of capital and corporate bonds issued 24.6 billion yuan. Major industry news: ① the Shanghai Stock Exchange issued the Interim Measures for the listing and trading of depositary receipts interconnected between Shanghai Stock Exchange and overseas stock exchanges. The Shanghai Stock Exchange has officially issued the Interim Measures for the listing and trading of depositary receipts interconnected between Shanghai Stock Exchange and overseas stock exchanges (hereinafter referred to as the Interim Measures) and the supporting guidelines for relevant cross-border conversion and market making business, which shall come into force as of the date of promulgation. On the basis of fully absorbing the contents of the public consultation in the early stage, the Shanghai Stock Exchange, in comparison with the provisions on the supervision of the interconnection of domestic and foreign stock exchanges for depositary receipts business of the CSRC, has made great progress in terms of the scope of application, listing review arrangements, termination of listing situations and procedures, regulatory requirements for continuous information disclosure, investor suitability requirements, etc, The original Interim Measures for the listing and trading of interconnected depositary receipts between Shanghai Stock Exchange and London Stock Exchange were further optimized, adjusted and renamed, and the Interim Measures and relevant business supporting guidelines were formed. ② A spokesman for the China Banking and Insurance Regulatory Commission answered reporters’ questions. The cbcirc will continue to take various measures to expand the coverage of Inclusive Finance and strengthen support for enterprises with production and operation difficulties, especially under the influence of the epidemic. Encourage national pension insurance companies to make bold innovations in business operation, risk control and management mechanism and system. In addition, the pilot of pension savings is about to start. The fund is set up in the financial market to ensure the stability of the market. In addition, the CIRC will further give full play to the advantages of long-term investment of insurance funds and guide insurance institutions to allocate more funds to equity assets.
Key issues for next week: stock based turnover in A-share market and marginal improvement of asset side of insurance shares.
Securities: this week, the exchange issued the guidelines for the interconnection of depositary receipts, and the two-way opening of the capital market was further strengthened. Affected by market sentiment, the securities sector has adjusted. It is expected that the securities sector will be suppressed by market sentiment in the short term, and the rebound space is limited. However, in the medium and long term, the current valuation of the securities sector deviates from the fundamentals, and the valuation is at a historical low. Under the main line of “steady growth”, it is still worth looking forward to the repair of the undervalued financial sector. It is suggested to pay attention to two main lines: 1) for the leading securities companies with outstanding comprehensive strength and gradually increasing market share in the securities sector, Citic Securities Company Limited(600030) (a + H) is recommended; 2) In the era of wealth management, China stock market news, which has differentiated competitiveness in the field of Internet wealth management, and Gf Securities Co.Ltd(000776) , which benefits from the development of fund subsidiaries, are recommended.
Insurance: the insurance index fell slightly following the market adjustment this week. In the long run, it is recommended to be a leading insurance company with a valuation at the bottom of history and a high dividend rate in the next year. Specific target suggestions: China’s property insurance with significantly narrowed risk exposure and AIA, which is at the forefront of channel transformation, have long recommended Ping An Insurance (Group) Company Of China Ltd(601318) (a + H) and China Pacific Insurance (Group) Co.Ltd(601601) (a + H) for multi line layout of health and elderly care industry.
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), China stock market news, Gf Securities Co.Ltd(000776) .
Risk tip: the economic recovery is less than expected; The long-term interest rate is lower than expected
