Market performance:
In the current period (2022.1.3-2022.1.7), the non bank (Shenwan) index was – 1.06%, ranking 17 / 31 in the industry, and the brokerage II index was – 3.44%; Shanghai Composite Index – 1.65%, Shenzhen Component Index – 3.46%, gem index – 6.80%. The top five stocks in terms of rise and fall: Harbin Hatou Investment Co.Ltd(600864) (+ 2.29%), Founder Securities Co.Ltd(601901) (+ 1.79%), Changjiang Securities Company Limited(000783) (+ 0.93%), The Pacific Securities Co.Ltd(601099) (+ 0.91%), Hongta Securities Co.Ltd(601236) (+ 0.08%); The top five stocks rose or fell: China stock market news (- 9.05%), Chinalin Securities Co.Ltd(002945) (- 7.91%), Gf Securities Co.Ltd(000776) (- 7.36%), Orient Securities Company Limited(600958) (- 7.19%), China Greatwall Securities Co.Ltd(002939) (- 6.18%).
Core view
The securities sector fell 3.44% this week, losing 3001.05pct in Shanghai and Shenzhen and 1.78pct in Shanghai stock index. At present, the valuation of Pb in the securities sector is 1.70 times, below the 50th quantile since 2016, which has a certain repair space. A shares fell for four consecutive years at the beginning of the year, and individual stocks with relatively high gains in the early stage callback. Affected by the market situation, most listed securities companies also made a sharp correction in the first three days of the year, but the head securities companies such as Huatai Securities Co.Ltd(601688) , Guotai Junan Securities Co.Ltd(601211) , Citic Securities Company Limited(600030) began to rise slightly on Friday. Recently, some securities companies have successively issued performance pre increase announcements. It is suggested to pay attention to the head securities companies with good performance and low valuation in 2021, such as Huatai Securities Co.Ltd(601688) , Citic Securities Company Limited(600030) .
On January 7, the CSRC announced that it planned to introduce the market maker mechanism into the science and innovation board, and drafted the pilot provisions on stock market making trading business of securities companies on the science and Innovation Board (Draft for comments). The deadline for feedback is February 6, 2022. The market making provisions clearly stipulates ten entry conditions for securities companies to participate in the market making business of the science and innovation board, including “the net capital in the last 12 months has been no less than 10 billion yuan”, “the classification rating in the last 3 years has been above class A (inclusive)”. According to the classified rating results and the statistical results of China Securities Association in 2020, there are 23 listed companies that meet this condition, including Citic Securities Company Limited(600030) , Guotai Junan Securities Co.Ltd(601211) , Shenwan Hongyuan Group Co.Ltd(000166) and other head securities companies. On the other hand, Gf Securities Co.Ltd(000776) , with strong market making business strength and the number of market making stocks in the new third board in the forefront, failed to meet the requirements of “classification rating above class A (inclusive) in the last three years” due to the classification rating of BBB in 2020, and was not eligible for the first batch of pilot qualification. The market maker business has higher requirements for the capital strength, the number of securities that can be dispatched and the market pricing research ability of securities companies, so it is more favorable for the head securities companies with strong capital and strong risk control ability. Based on the number of market making securities companies on the new third board since 2016, the number of market making securities companies such as Guotai Junan Securities Co.Ltd(601211) , Shenwan Hongyuan Group Co.Ltd(000166) , Citic Securities Company Limited(600030) , China International Capital Corporation Limited(601995) , China Merchants Securities Co.Ltd(600999) has exceeded 100, which has a good business foundation and is likely to take the lead in the market making business of science and innovation board.
Risk tips: strengthened supervision, policy risk, market fluctuation and repeated epidemic situation
