Key points
Market review: from March 28 to April 4, 2022, the Shanghai Composite Index rose by 2.2%, the Shenzhen Component Index rose by 1.3%, the non bank financial index rose by 3.6%, of which the insurance index rose by 3.0%, the brokerage index rose by 3.9%, the diversified financial index rose by 2.8%, and the Hang Seng financial industry index rose by 3.6%. Since the beginning of 2022, the Shanghai Composite Index has fallen by 9.8%, the Shenzhen composite index has fallen by 17.7%, and the non bank financial index has fallen by 13.6%, 3.8pct behind the Shanghai Composite Index and 4.1pct ahead of the Shenzhen composite index. This week, the top five stocks in the sector rose: Jingwei Textile Machinery Company Limited(000666) (13.90%), Guoyuan Securities Company Limited(000728) (10.75%), Boc International (China) Co.Ltd(601696) (9.92%), Jiangsu Guoxin Corp.Ltd(002608) (9.58%), Jilin Aodong Pharmaceutical Group Co.Ltd(000623) (9.57%).
Industry key data tracking: the average share based trading volume this Sunday was 1008.1 billion yuan. As of March 31, the balance of margin trading and securities lending was 1672839 billion yuan, accounting for 2.51% of the circulating market value of a shares. The transaction volume of A-Shares accounted for 1.7%. As of April 1, the number of pledged shares was 415.5 billion, accounting for 5.18% of the total share capital, down 0.01 PCT from last week; The total amount of market pledge is 3610.6 billion yuan, accounting for 4.02% of the market value of pledge; Equity financing raised 23.3 billion yuan of capital and corporate bonds issued 25 billion yuan.
Major industry news: ① the CBRC solicited public opinions on the decision on amending some administrative licensing regulations (Draft for comments). The decision amended the relevant provisions of the measures for the implementation of administrative licensing matters of Chinese funded commercial banks of the China Banking and Insurance Regulatory Commission, the measures for the implementation of administrative licensing matters of rural small and medium-sized banking institutions of the China Banking and Insurance Regulatory Commission, and the measures for the implementation of administrative licensing matters of foreign funded banks of the China Banking and Insurance Regulatory Commission. The main amendments include: reducing the scope of examination and approval of the qualification of senior executives of banks, optimizing the relevant qualification conditions, Optimize the scope and mechanism of examination and approval of bank bond issuance, and modify some terms according to the principle of consistency between China and foreign countries. ② The CSRC proposed to “promote the improvement of the bond financing support mechanism of private enterprises and enhance the quality and efficiency of serving the development of private economy”. Main contents: first, launch scientific and technological innovation corporate bonds, give priority to supporting private enterprises in high-tech and strategic emerging industries to raise funds by issuing bonds. Second, further optimize the financing service mechanism, include more qualified high-quality private enterprises into the list of well-known and mature issuers, and improve financing efficiency. Third, give play to the role of market-oriented credit enhancement, encourage market institutions and policy institutions to provide credit enhancement support for private enterprise bond financing by creating credit protection tools, and launch combined credit protection contract business as soon as possible. Fourth, facilitate the repurchase financing mechanism and appropriately relax the access threshold of private enterprise bond repurchase pledge library protected by credit. Fifth, encourage securities fund institutions to increase the business investment of private enterprises, and include relevant indicators of private enterprise bonds in the classified evaluation and special business ranking of securities companies.
Key issues for next week: stock based turnover in A-share market and marginal improvement of asset side of insurance shares.
Securities: this week, a number of head securities companies released their annual reports for 2021. On the whole, head securities companies have excellent profitability, excellent performance in asset management business and high allocation value in the long run. We believe that the current valuation of the securities sector deviates from the fundamentals, the valuation is at a historical low, and the repair of the undervalued financial sector under the main line of “steady growth” is still worth looking forward to. 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: this week, the insurance sector outperformed the market due to macro factors. In the long run, the valuation repair is still in progress. It is recommended to recommend leading insurance companies with a valuation at the bottom of history and a high dividend rate in the next year. The specific target recommendations are focused on: China’s property insurance with significantly narrowed risk exposure and AIA, which is at the forefront of channel transformation, and Ping An Insurance (Group) Company Of China Ltd(601318) (a + H) and China Pacific Insurance (Group) Co.Ltd(601601) (a + H) with multi line layout of health and elderly care industry for a long time.
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 was lower than expected.
