The CSRC and other four departments issued documents to clarify the information security responsibilities of domestic enterprises listed overseas. This week, the draft of “provisions on strengthening the confidentiality and archives management related to overseas securities issuance and listing” was released. The main points are as follows: 1) guide enterprises to properly manage confidential and sensitive information; 2) Relevant regulatory authorities and overseas regulatory institutions carry out cross-border regulatory cooperation activities including joint inspection in a safe and efficient manner; 3) Delete the expression in the original provisions that “the on-site inspection shall be mainly conducted by Chinese regulators or rely on the inspection results of Chinese regulators”; 4) Make it clear that if the overseas securities regulatory authority and relevant competent departments propose to investigate and collect evidence or carry out inspection on domestic enterprises, securities companies and other intermediary service institutions, it should be carried out through the cross-border regulatory cooperation mechanism; 5) The CSRC or relevant competent authorities shall provide necessary assistance according to the bilateral and multilateral cooperation mechanism; 6) We will continue to support all kinds of qualified enterprises to list abroad and continue to deepen cross-border regulatory cooperation.
The new regulations embody the dual spirit of openness, inclusiveness and compliance security, and provide a policy basis for solving the dilemma of China concept shares. At present, the regulatory dilemma faced by zhonggai shares lies in the lack of trust and recognition of domestic audit institutions and their audit work by the US supervision, and the key to solving this dilemma lies in the on-site review of the audit manuscript of zhonggai enterprises by the US supervision. Considering the necessity of PCAOB’s subsequent visit to domestic audit institutions to review the audit documents of relevant Chinese enterprises, deleting “the on-site inspection should be mainly conducted by Chinese regulators or rely on the inspection results of Chinese regulators” will better meet the review requirements of American regulators on the audit documents. At the same time, the new regulations are designed to reduce unnecessary confidential sensitive information from entering the working paper, and superimpose the current situation that the current paper contains little sensitive business data or information, which will maximize the protection of China’s national information security. Therefore, the new regulations are in line with the interests of China and the United States and lay a policy foundation for more efficient and secure cross-border audit and supervision cooperation. At present, the unprecedented dilemma faced by CICU has also ushered in the “dawn” of a successful solution.
The sales pressure of life insurance is still on, and the quantity and quality of auto insurance are both rising, and the certainty is consolidated. 1) The original premium of the life insurance industry in February was 1090.7 billion yuan, a year-on-year decrease of 4%, which was narrowed compared with the decrease (- 4.9%) in January. The sales pressure of new orders is still large, and the willingness of financial management and savings under the influence of the epidemic is still relatively low; Among them, the premium of health insurance was flat, but the proportion increased 3PP to 18% compared with that at the end of January, reflecting that the transformation from residents’ security awareness to demand is still progressing steadily. We believe that the construction of the three pillar pension system is expected to further activate the security demand, and the market space is worth looking forward to. 2) The premium growth rate of the property insurance industry in February reached 13.4%, of which the premium growth rate of automobile insurance reached 12%. We believe that automobile insurance has entered a double optimization channel of scale improvement and cost rate improvement, and the growth certainty has been further consolidated.
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). In terms of China concept stocks, although the reversal of the market has not yet come, the policy expectation has improved significantly. Under the repeated market, we can bargain hunting and build positions to gain short-term flexibility. It is suggested to pay attention to futu Holdings (futu. O, buy) and tiger securities (TIGR. O, buy).
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.
