Monthly attention: the financial commission sets the tone of "stabilizing the market", and it is suggested to pay attention to the securities sector under the policy catalysis. In March, the situation in Russia and Ukraine was disturbed repeatedly, the epidemic in China spread rapidly, the tension between China and the United States, Chinese stocks fell in response, and the A-share market fluctuated violently. On March 16, the Finance Committee held an emergency meeting. Premier Liu He responded to several major issues such as macro-economy, real estate enterprises, China concept stocks, platform economic governance and the stability of Hong Kong's financial market, which are also the main factors causing the recent market decline. The meeting was held by the higher-level financial commission of the State Council, which released a strong signal of stabilizing the macro-economy and the market. Market confidence was significantly boosted. The Shanghai stock index rose 3.48% and the brokerage index rose 6.51%, leading the market.
Market performance. In March 2022, the equity market made a sharp correction, and the Shanghai stock index closed at 325220 points, down 6.07%; Gem index fell 7.70% to close at 265949; The securities industry index (Shenwan) fell 6.35%, underperforming the market by 0.29 percentage points. The fixed income market fluctuated, and the total net price index of China bonds fell by 0.22%. In terms of industries, coal (10.81%), real estate (9.52%), agriculture, forestry, animal husbandry and fishery (2.94%) rose higher, while petroleum and Petrochemical (-11.74%) and computer (-11.59%) fell higher. This month, the securities Shenwan secondary industry index securities II fell 6.35%
Performance of each business line
Brokerage business: in March, the daily average stock based trading volume of A-share market was 1104610 billion yuan, up 8.58% month on month.
Credit business: at the end of March, the balance of two financing reached 1672.8 billion yuan, a month on month increase of - 3.15%; The balance of stock pledge was 3578.9 billion yuan, a month on month increase of - 7.50%, and the scale of credit business reached a low level in recent one year
Proprietary business: in March, the performance of equity market index was Shanghai Stock Exchange 50 (- 5.91%) Shanghai Stock Exchange Index (- 6.07%) gem index (- 7.70%)
Asset management business: in March, the market was poor, with 249 new collective financial products issued by securities companies, with a total of 2.128 billion copies, a month on month increase of - 40%, including 73 million shares of stock products, a month on month increase of - 88%.
Investment banking: the IPO Financing scale in March was 50.017 billion yuan, a month on month increase of + 142.22%; The financing scale of additional issuance was 47.403 billion yuan, a month on month increase of + 86.55%. Corporate bonds were 298438 billion yuan, a month on month increase of + 112.78%; Corporate bonds were 53.200 billion yuan, a month on month increase of + 282.67%; The financing scale of ABS was 88.636 billion yuan, a month on month increase of + 209.55%.
Investment suggestion: in Q1 2022, the market fluctuated violently. The brokerage index fell by 19.22% and the Shanghai stock index fell by 10.65% in the same period. Geopolitical conflicts, epidemic outbreaks, repeated Sino US relations, increased downward pressure on China's economy and other multiple factors have had a certain impact on the stock market, and the brokerage index has been at an all-time low. At present, the valuation of securities companies' index has been in a relatively safe range. After the peripheral market environment is stable and China's epidemic is under control, the securities companies' sector is expected to usher in a rising market under relatively loose liquidity.
Risk warning: market fluctuation risk and less than expected risk of capital market reform
