Core view
Market volatility does not change the medium and long-term trend, and public funds are still one of the best tracks in the sector. This week, the China Foundation Association released the latest public fund market data. As of February 22, a total of 152 institutions in China had managed 9491 public fund products, with a total net asset value of 26.34 trillion yuan, a year-on-year increase of 20.93% and a month on month increase of 1.7%. Both quantity and net worth reached a new high. 1) In terms of scale. Among open-end funds, the net worth of stock type, hybrid type, currency type, bond type and QDII type all achieved month on month growth in varying degrees, with growth rates of 2.09%, 0.54%, 2.94%, 2.39% and 2.37% respectively; 2) Share. In addition to the 0.36% reduction in the share of mixed type, the share of stock type, money market, bond type and QDII type increased month on month compared with the previous month, with the growth rates of 0.94%, 2.94%, 2.59% and 7.17% respectively. Since March, affected by external factors such as the conflict between Russia and Ukraine, A-Shares have significantly retreated, investment sentiment has been damaged, and the net value and share of public funds are highly likely to decline month on month. However, considering the marginal improvement of China’s macro policy environment and retail credit policy this year, the liquidity in the hands of retail investors is still relatively abundant. When the subsequent market stabilizes or even reverses, the public fund market still has a high probability of maintaining a steady growth trend, and the fund track is still the track with the most growth certainty in the medium and long term of the non bank sector.
The new CDR regulations were released, and the two-way opening of the capital market continued to advance. This week, the Shanghai and Shenzhen stock exchanges respectively issued the Interim Measures for CDR listing and trading and relevant business supporting guidelines. The key points are as follows: 1) clarify the conditions for overseas issuers to apply for CDR listing on the Shanghai and Shenzhen stock exchange for the first time. Including a market value of no less than 20 billion yuan, a listing of no less than 3 years, a CDR of no less than 50 million copies and a corresponding market value of no less than 500 million yuan; 2) It stipulates that the threshold for individual investors in CDR trading is 500000 yuan and have participated in securities trading for more than 24 months; 3) Clarify the basic principles and requirements of CDR continuous information disclosure. 4) Clarify the differentiated trading mechanism of CDR. Such as market maker system, price limit, price benchmark on the first day of listing, etc. In addition, four companies including Sany Heavy Industry Co.Ltd(600031) have recently announced plans to issue GDR and list on the Swiss stock exchange. The release of new CDR regulations and the continuous expansion of overseas GDR issuing enterprises mark the continuous promotion of institutional two-way opening of China’s capital market and boost the continuous expansion of A-share market.
The annual reports of listed insurance companies have been released one after another, and the liability side is under pressure, but the logic of auto insurance recovery continues to be confirmed. The annual report of listed insurance companies this week shows that the premium on the liability side of life insurance in 2021 is under pressure, and the agent team continues to decline, about 50% lower than the highest level of scale. All companies are actively promoting team and product reform in order to achieve high-quality development under a stable scale. It is worth looking forward to the recovery of subsequent new orders and the activation space of demand; Since the commercial reform, the auto insurance business has stepped into the channel of both premium improvement and cor improvement. We reiterate our optimistic judgment on the property insurance business and suggest to seize the allocation opportunity.
Investment proposal and investment object
In terms of securities companies, favorable capital market policies and institutional innovation are still the main theme of the current sector, maintaining a positive rating. In the difficult times of the market, we should stick to the clear and clear leader of undervalued value, and still advocate the main line of derivatives. We recommend Citic Securities Company Limited(600030) ( Citic Securities Company Limited(600030) , overweight), Huatai Securities Co.Ltd(601688) ( Huatai Securities Co.Ltd(601688) , overweight). We suggest paying attention to China International Capital Corporation Limited(601995) (03908, Unrated).
In terms of diversified finance, A-Shares recommend leading high-altitude operation platform lessee Zhejiang Huatie Emergency Equipment Science & Technology Co.Ltd(603300) ( Zhejiang Huatie Emergency Equipment Science & Technology Co.Ltd(603300) , buy); Hong Kong stocks recommend Far East Hongxin, the leader of financial leasing (03360, buy). Tiger Holdings (tu.gro) reversed its expectations, while the market of tiger Holdings (tu.gro) did not improve significantly in the short term, although it was suggested to buy in the short term.
In terms of insurance, the scale of the team has gradually bottomed out, the production capacity of the remaining team has been improved, and we pay attention to the new order recovery and demand activation space driven by the transformation; The inflection point of property insurance has arrived, and we look forward to the synchronous improvement of premium and cor; The outlook of the equity market is optimistic, and the liberalization of the investment ceiling adds upward flexibility. We are optimistic about large insurance companies that actively promote reform and enhance production capacity through science and technology empowerment and cross sales, and maintain the optimistic rating of the industry. Follow up suggestions focus on China Property Insurance (02328, not rated), Ping An Insurance (Group) Company Of China Ltd(601318) ( Ping An Insurance (Group) Company Of China Ltd(601318) , buy), AIA (01299, not rated).
Risk tips
The suppression of systemic risk on the performance and valuation of securities business; Stricter supervision than expected;
The long-term interest rate is lower than expected; Related policy risks in diversified financial field.
