Core view
The CSRC issued a heavy release, and the science and innovation board is about to usher in the market maker mechanism. On January 7, the CSRC announced that it planned to introduce the market maker mechanism into the science and innovation board, and solicited public opinions on the pilot provisions on stock market making trading business of securities companies on the science and Innovation Board (Draft for comments). There are 17 contents, mainly including six aspects: market maker access conditions, access procedures, market making bond source arrangement, internal control, risk monitoring, supervision and law enforcement. The CSRC will issue and implement the provisions after further improving and performing the procedures according to the public consultation.
Kechuang board will introduce the market maker mechanism through pilot, and focus on benefiting the head securities companies under the high threshold. 1) In terms of the arrangement of market making securities sources, the new regulations make it clear that securities companies can buy stocks in the secondary market as market making securities sources, but centralized large-scale buying will have many negative effects and restrictions. In order to enrich the source of market making securities, the new regulations specify that self owned stocks, stocks borrowed from China Securities Finance Co., Ltd. or other stocks with the right to dispose can be used. 2) In terms of access conditions and procedures, in addition to having perfect business plans, professionals, technical systems and other conditions, the securities companies participating in the pilot at the initial stage also need to meet the requirements that the net capital in the last 12 months is not less than 10 billion yuan and the classification rating in the last three years is above class A (inclusive). Qualified securities companies may submit relevant application materials for market making trading business to the CSRC, and the CSRC shall approve their business qualification. Securities companies can buy stocks in the secondary market as the source of market making securities, or use their own stocks, stocks borrowed from China Securities Finance Co., Ltd., or other stocks with the right to dispose of. However, the internal control of pilot securities companies must strictly improve business isolation and prevent the transfer of interests. In principle, the market making shareholding of the science and Innovation Board shall not exceed 5%, so as to improve the monitoring mechanism of abnormal transactions. At the same time, if the exhibition is illegal, regulatory measures or administrative penalties will be taken. Considering that there are only 26 securities companies that meet the two quantitative conditions at the same time, with the superposition of qualitative standards, fewer securities companies will actually meet the threshold of market makers. In fact, the introduction of A-Shares into the market maker mechanism for the first time will focus on benefiting the head securities companies.
The insurance market has made a good start, and we still need to pay further attention to the pace of business promotion. In the first week of the new year, the insurance sector rose by 3.95%, and the market performance was good, mainly due to the switching of market style at the beginning of the year, but we still need to pay attention to the next policy guidance and business promotion rhythm. 1) The solvency adequacy ratio has declined under the promotion of the second generation phase II project, the capital advantages of listed insurance enterprises are prominent, and the product strategy and asset allocation will not be greatly affected; 2) With the continuous promotion of the good start, the demand for serious illness insurance under the substitution effect of Huimin insurance is still relatively low. In contrast, the sales environment of savings insurance is better than in previous years. We believe that under the trend of building the third pillar system under the guidance of supervision, the demand for long-term savings insurance is expected to continue to be tapped to make up for the gap caused by the decline of serious illness to a certain extent.
Investment proposal and investment object
In terms of securities companies, double click on market liquidity and policy to maintain optimistic ratings and select high-quality targets with clear logic and fundamentals. The main line of derivatives and trading business recommends Citic Securities Company Limited(600030) (600030, overweight), Huatai Securities Co.Ltd(601688) (601688, overweight), and it is recommended to pay attention to China International Capital Corporation Limited(601995) (03908, not rated); The main line of public offering recommends Gf Securities Co.Ltd(000776) (000776, buy), China Industrial Securities Co.Ltd(601377) (601377, overweight), and it is recommended to pay attention to China Greatwall Securities Co.Ltd(002939) (002939, not rated).
In terms of diversified finance, A-Shares suggest to pay attention to the leading Zhejiang Huatie Emergency Equipment Science & Technology Co.Ltd(603300) (603300, not rated) of aerial work vehicle operating lessors; Hong Kong stocks recommend Far East Hongxin (03360, buy), a leader in financial leasing, and Hong Kong Stock Exchange (00388, overweight), a leader in global exchanges; US stocks recommend BlackRock, the global leader in asset management (BLK. N, overweight); In terms of concept shares, it is recommended to pay attention to Noah wealth (Noah. N, buy), a third-party high net worth financial management leader.
In terms of insurance, the scale of the team has gradually bottomed out, the production capacity of the remaining team has been improved, and it is expected to start a good start gradually; 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 with science and technology empowerment and cross sales, and maintain the optimistic rating of the industry. Follow up suggestions focus on Ping An Insurance (Group) Company Of China Ltd(601318) (601318, buy), China Pacific Insurance (Group) Co.Ltd(601601) (601601, not rated), 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.
