Investment suggestions:
The Shanghai and Shenzhen stock exchanges also issued the supporting business rules for interconnected depositary receipts. The rules clarify and stipulate the listing conditions, pre-approval arrangements for listing after opening the financing function, trading and cross-border conversion mechanism, continuous supervision requirements and investor suitability requirements. The threshold for individual investors is set at 500000 yuan. Support qualified listed companies to apply for overseas issuance of global depositary receipts, and also support overseas qualified listed companies to apply for issuance of Chinese depositary receipts on the Shanghai and Shenzhen Stock Exchange. This is the regulatory authorities’ implementation of the decision-making and deployment of the financial commission, deepening the cross-border cooperation mechanism, and providing institutional guarantee for the two-way opening of the capital market.
Both light and light, asset light business has become the core driver of transformation. Securities companies have successively released annual reports, and asset light business has become the driving force of performance growth. Wealth management focuses on selling financial products and fund investment advisers on a commission basis. Investment banking business relies on the registration bonus system, which has become an important starting point for securities companies to explore differentiated advantages. The heavy asset business has developed steadily, the scale of self operated investment has increased, and the derivatives business has developed rapidly.
Market transaction activity decreased. Last week, the average daily turnover of stocks was 0.95 trillion, down 14.27% month on month. Since the beginning of the year, important broad-based indexes have closed negative. With the continuous release of the steady growth policy, the capital market is expected to operate smoothly and consolidate the policy bottom.
The allocation opportunities of the securities industry appear. In the early stage, affected by the overall decline of the market, the valuation of the securities industry also moved down rapidly. At present, the valuation of Pb is 1.42 times, and some securities companies have fallen below 1 times, which is at a historical low. With the continuous introduction of favorable policies and the smooth operation of the capital market, the securities industry ushered in allocation opportunities and gave the industry a “optimistic” rating.
Industry data:
(1) wealth management
Secondary market performance: stock market performance: as of March 25, the stock index fell compared with the beginning of the year. The gem index closed down 20.61%, the CSI 500 closed down 14.83%, the CSI 300 index closed down 15.50%, and the SSE 50 closed down 12.76%.
New investors: in February 2022, 1.4146 million new investors were added, with a month on month increase of + 3% and a year-on-year increase of + 6.82%; By the end of February, the number of investors was 200 million, a year-on-year increase of + 10.29%.
Transaction volume: since 2022, the daily transaction volume has remained at the level of trillion yuan. Last week, the turnover was 4.76 trillion yuan, with an average daily turnover of 0.95 trillion yuan, a month on month increase of – 14.27%.
Two financial services: as of March 25, the balance of two financial services was 1.68 trillion yuan, down from – 7.15% at the end of the previous year. Among them, the balance of financing was 1.59 trillion yuan, up – 6.54% from the end of the previous year, and the balance of securities lending was 92.072 billion yuan, up – 23.36% from the end of the previous year.
Stock pledge business: the number and proportion of Pledged Shares in the market fell month on month. As of March 25, the number of Pledged Shares in the market was 416222 billion shares, down – 0.86% from the end of the previous year, accounting for 5.57% of the total share capital, down 1.76 percentage points from the end of the previous year. The market value of pledge is 3.62 trillion yuan.
(2) investment bank
According to the statistics of listing date, the total scale of equity financing last week was 29.757 billion yuan, a month on month increase of – 23%, including 10.759 billion yuan raised by IPO, 7.422 billion yuan raised by additional issuance, 10.777 billion yuan raised by convertible bonds and 800 million yuan raised by exchangeable bonds..
(3) investment
Bond market performance: as of March 25, the China bond total price (gross value) index closed down 0.40% from the beginning of the year. Commodities: as of March 18, the commodity index closed at 203.05, up 12.40% from the beginning of the year. Revenue voucher business: in January 2022, securities companies issued 3642 revenue vouchers in total, with a new issuance scale of 109465 billion yuan. Among them, 841 revenue vouchers were issued through the quotation system, with an issuance scale of 40.09 billion yuan; 2801 revenue vouchers were issued through the counter market, with an issuance scale of 69.375 billion yuan. As of the end of the period, the existing scale was 445438 billion yuan.
OTC derivatives business: in January 2022, securities companies carried out OTC financial derivatives transactions, adding an initial nominal principal of 612449 billion yuan; By the end of the period, the total outstanding initial nominal principal of OTC financial derivatives was 2075678 billion yuan. In January 2022, the nominal principal of swap business increased by 329355 billion yuan, a month on month increase of – 24.98%; The new nominal principal of option business was 283094 billion yuan, a month on month increase of – 19.60%.
Risk tips:
The situation in Russia and Ukraine continues to deteriorate;
The secondary market fell sharply;
The epidemic situation exceeded expectations;
The capital market reform was not as expected.
