Securities: the average daily turnover of the market this week decreased by 160 billion to 0.95 trillion month on month; The balance of the two financial institutions (3.24 yuan) remained stable at 1.68 trillion yuan. At the weekend, the China Banking and Insurance Regulatory Commission once again stated that it would give full play to the long-term investment advantages of insurance funds, enrich the channels for insurance funds to participate in capital market investment, encourage insurance companies to issue portfolio asset management products, increase the allocation of stock and bond assets, and improve the arrangements for the transition period of phase II Supervision of the second generation in accordance with the principle of “one company, one policy” to maintain the stability of investment in equity assets of insurance funds. From the disclosed annual reports of listed insurance companies, it can be seen that by the end of 2021, the proportion of equity asset investment of insurance funds has decreased. In addition to market factors, regulatory factors can not be ignored. After the regulatory stability maintenance signal appears, the demand for equity asset investment of insurance funds may be released, which will help stabilize the market. On the same day, the Shanghai and Shenzhen Stock Exchange issued the Interim Measures for the listing and trading of depositary receipts interconnected with overseas exchanges. The normalization of interconnection will continue to inject liquidity into China’s capital market and constitute a long-term positive. Since the beginning of last year, we have seen a year-on-year increase of RMB 176.5 billion in equity financing, of which, we have seen a year-on-year increase of more than RMB 16.5% over the same period last year; According to Dealogic data, as of March 23, the amount of IPO Financing in the U.S. market (except SPAC) decreased by nearly 94% year-on-year. The current carrying capacity of the Chinese market needs special attention. In addition, the State Council has broken down the government work report to relevant departments one by one, and clarified the responsibilities and completion time limit. It is expected that the financial stability guarantee fund will be raised by the end of September, and differentiated charges will be implemented for different industries and entities, which may have a certain impact on the annual profits of the industry.
Insurance: at present, four insurance companies have disclosed their annual reports. In addition to Taiping’s adverse market growth, the shrinking scale of agents and the increasing difficulty of increasing staff have become important factors for the weak growth of the liability side of insurance companies. The impact of AIA life and Internet insurance companies on the competitive pattern of China’s insurance market is long-term and huge. The main products of each insurance enterprise face slightly different problems due to different audiences. In the future, the attempts of insurance companies to find market segmentation positioning, differentiated product strategy, accurate customer portrait and financial technology empowerment will accelerate market reconstruction. The layout of the health care industry chain may become an opportunity to overtake on the curve. At present, the valuation of insurance companies is at a low level in recent years. In the future, market value management and increasing the proportion of dividends are expected to boost market confidence and help repair the valuation.
Sector performance: during the five trading days from March 21 to March 25, the non bank sector fell by 2.95% as a whole. According to the industry classification standard of Shenwan, the non bank ranked 25 / 31 of all industries; Among them, the securities sector fell 4.04%, underperforming the CSI 300 index (- 2.14%); The insurance sector fell 1.09%, outperforming the CSI 300 index (- 2.14%). In terms of stocks, the top five losers for brokers are Guangdong Golden Dragon Development Inc(000712) \ (- 1.33%), New China Life Insurance Company Ltd(601336) (- 1.78%), China Pacific Insurance (Group) Co.Ltd(601601) (- 1.95%), Hubei Biocause Pharmaceutical Co.Ltd(000627) (- 2.84%), China Life Insurance Company Limited(601628) (- 4.38%) St West Water (- 9.47%).
Risk tips: macroeconomic downside risk, policy risk, market risk and liquidity risk.
