Market review: from April 6 to April 8, 2022, the Shanghai Composite Index fell 0.9%, the Shenzhen Component Index fell 2.2%, the non bank financial index fell 0.3%, of which the insurance index rose 0.5%, the brokerage index fell 0.4%, the diversified financial index fell 1.9%, and the hang Seng financial industry index rose 0.1%. Since the beginning of 2022, the Shanghai Composite Index has fallen by 10.7%, the Shenzhen composite index has fallen by 19.5%, and the non bank financial index has fallen by 13.8%, 3.2pct behind the Shanghai Composite Index and 5.7pct ahead of the Shenzhen composite index. The top five stocks in the sector rose this week: ST Lvting (15.38%), Guosheng Financial Holding Inc(002670) (9.57%), Chinalin Securities Co.Ltd(002945) (6.64%), Shanghai Chinafortune Co.Ltd(600621) (2.69%), Polaris Bay Group Co.Ltd(600155) (1.70%).
Industry key data tracking: the average share based trading volume this Sunday was 1011 billion yuan. As of April 7, the balance of margin trading and securities lending was 1662036 billion yuan, accounting for 2.51% of the circulating market value of a shares. The trading volume of Liangrong accounts for 7.2% of the trading volume of a shares. As of April 8, the number of pledged shares was 415.5 billion, accounting for 5.18% of the total share capital, unchanged from last week; The total amount of market pledge is 3610.6 billion yuan, accounting for 4.08% of the market value of pledge; The capital raised through equity financing was 19.6 billion yuan, and the amount of corporate bonds issued was 6.3 billion yuan.
Main news of the industry: 1. Speech by Chairman Yi Huiman at the third member congress of the association of listed companies – “work hard to meet difficulties and strive to create a new situation of high-quality development of listed companies”. Yi Huiman said that listed companies should follow the characteristics and development laws of public companies, adhere to the principle of “four awes” and the basic requirements of “four bottom lines”, strive to improve “five abilities” and explore high-quality development paths. The pace of high-level opening-up of the capital market will not change. The CSRC will pay close attention to studying and launching a new round of practical measures for independent opening-up, steadily expand the scope of the targets of the Shanghai Shenzhen Hong Kong stock connect, promote the expansion and optimization of the mechanisms of the Shanghai Hong Kong stock connect and Shenzhen Hong Kong stock connect, steadily expand the two-way opening-up of commodity and financial futures markets, further enrich the supply of international varieties and comprehensively enhance the complementary competitiveness of the capital market. 2. The CBRC issued the notice on further strengthening financial support for the development of small and micro enterprises in 2022. The notice points out that the overall requirement of the work in 2022 is to adhere to the general tone of seeking progress while maintaining stability and continuously improve the financial supply of small and micro enterprises. The annual work goal was clarified: in terms of total amount, the banking industry continued to achieve the growth rate of inclusive small and micro enterprise loans and the “two increases” in the number of households. In terms of structure, strive to continuously increase the proportion of credit loans in the loan balance of inclusive small and micro enterprises. In terms of cost, on the premise of ensuring the incremental expansion of credit supply, strive to reduce the interest rate of new inclusive small and micro enterprise loans issued by the banking industry in the whole year compared with 2021.
Key issues for next week: social finance data in March, stock based turnover in A-share market and marginal improvement of asset side of insurance stocks.
Securities: Taking the reform of the registration system as the core, driving the high-quality development of the capital market and accelerating the two-way opening-up are the core of this year’s reform. The reform policies of the capital market are conducive to the improvement of the development space of the securities industry. At present, the valuation of the securities sector deviates from the fundamentals, and the valuation is at a historical low. Under the main line of “stable growth”, it is still worth looking forward to the repair of the undervalued financial sector. 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 in the field of Internet wealth management and Gf Securities Co.Ltd(000776) , which benefited from the rapid development of fund subsidiaries, are recommended. Insurance: this week, the insurance sector outperformed the market due to the impact of the rise of real estate stocks to repair the asset side expectation. 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 focus on: China’s property insurance with significantly narrowed risk exposure and AIA in the forefront of channel transformation. It is recommended to recommend 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 pension industry.
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.
