Securities: the average daily turnover of the market this week increased by 10 billion to 0.94 trillion month on month; The balance of the two financial institutions (4.7) fell slightly to 1.66 trillion. In his speech at the third member congress of the association of listed companies at the weekend, chairman Yi of the CSRC once again mentioned improving the quality of listed companies, adhering to a number of regulatory priorities such as deepening the reform of the capital market, expanding the opening-up, expanding the market scale and promoting innovation, and maintaining the stable development of the capital market in line with the national macro policy of “stable growth and stable expectation”. As the “gatekeeper” of the capital market, in the process of comprehensively promoting the registration system, the regulatory authorities transferred part of the “approval” authority to the investment banking department, and put forward higher professional requirements for investment banks. When underwriting and recommending, investment banks need to focus on compliance, value discovery and investor protection, formulate more reasonable prices, and assist higher-quality enterprises in listing and financing, Help maintain the sound operation of the capital market. In addition, at present, China’s delisting system has been relatively sound. Investment banks need to conduct more rigorous evaluation and objective feedback on the situation through continuous supervision after the listing of enterprises, and strictly perform their supervision responsibilities. At the same time, they need to assist in investment, education and information disclosure. We believe that with the continuous promotion of capital market reform, the position of the securities industry in the financial system is expected to continue to improve, and there is a large room for improvement in operating performance and even valuation level. After a long period of adjustment, the valuation level of the core value target of the sector has dropped to a reasonably low level, and the investment value of the relevant target is prominent.
Insurance: we can see that in recent years, AIA life and Internet insurance companies have become two forces that can not be ignored in China’s insurance market, and the impact on the market competition pattern is long-term and huge. Due to the different business and regional development focus, the audience of main products is divided, and the problems and reform pain points faced by each Chinese insurance enterprise are also slightly different. 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. We believe that the valuations of major listed insurance companies are at a low level in recent years. In the future, market value management and increasing the proportion of dividends and dividends are expected to boost market confidence and help repair valuations. From the dividend rate of listed insurance companies in 2021, the overall dividend rate has reached a high level in recent years and is higher than the interest rate of important term treasury bonds, and the investment value is expected to gradually appear.
Sector performance: during the three trading days from April 6 to April 8, the non bank sector fell by 0.25% as a whole. According to the industry classification standard of Shenwan, the non bank ranked 9 / 31 of all industries; Among them, the securities sector fell 0.43% and the insurance sector rose 0.52%, both outperforming the Shanghai and Shenzhen 300 index (- 1.06%). In terms of stocks, the top five gainers for brokerage companies are Guosheng Financial Holding Inc(002670) (0.76%), Ping An Insurance (Group) Company Of China Ltd(601318) (0.57%), The People’S Insurance Company (Group) Of China Limited(601319) (0.22%), China Life Insurance Company Limited(601628) (- 0.18%), Hubei Biocause Pharmaceutical Co.Ltd(000627) (- 0.62%), ST West Water (- 1.84%).
Risk tips: macroeconomic downside risk, policy risk, market risk and liquidity risk
