The securities industry outperformed the market in December. In December, the securities sector rose 6.45%, outperforming the CSI 300 index by 4.20 percentage points, and the securities industry ranked 10th among the 28 Shenwan industry indexes.
The valuation of listed securities companies was basically flat compared with last month. As of January 7, the Pb valuation of listed securities companies was 1.59 times (historical TTM, median, excluding negative values, the same below), an increase of 0.04 times over the end of November, and 1.55 times on November 30. On January 7, the valuation was in the last 12% of the history, and the median of historical Pb valuation was 2.58.
Capital market reform is expected to accelerate further. The central economic work conference was held in Beijing from December 8 to 10, 2021, which proposed to fully implement the stock issuance registration system. The central economic work conference set the tone for the full implementation of the registration system next year, which shows that China’s capital market reform is expected to speed up further. On January 7, 2022, the CSRC drafted the pilot provisions on stock market making trading business of securities companies on the science and Innovation Board (Draft for comments), which plans to introduce the market maker mechanism into the science and innovation board. According to the analysis of the impact of the introduction of market making opportunity system into the securities sector on the science and innovation board, it will be conducive to the transformation of securities companies’ proprietary business to market making trading business. As the head securities companies have obvious advantages in capital strength, investment and research strength, pricing ability, risk management and other professional qualities, and have taken the lead in the directional transformation of self operated business areas, it is expected that the introduction of market making opportunity system will benefit the head securities companies.
Maintain the rating of “leading market” in the industry. On the investment main line, we suggest paying attention to the three main lines of high-quality head securities companies, securities companies with prominent advantages in wealth management and leading investment banking business. Investment main line 1: focus on the head securities companies with stable operation, strong capital strength and obvious policy advantages. Recommend Citic Securities Company Limited(600030) (600030. SH) and pay attention to China International Capital Corporation Limited(601995) (601995. SH). Investment mainline 2: focus on securities companies that comply with the transformation and development of wealth management. Recommend China stock market news (300059. SZ), Huatai Securities Co.Ltd(601688) (601688. SH), Orient Securities Company Limited(600958) (600958. SH). Investment main line 3: it is suggested to pay attention to China Securities Co.Ltd(601066) (601066. SH), which is leading in investment banking business and ranks in the forefront of the new third board.
Risk tip: market trading activity is low; The market fluctuates greatly; The business development of the securities company is not as expected; Strengthening financial supervision policies; The progress of capital market reform was lower than expected.
