Market review: from April 25 to April 29, 2022, the Shanghai Composite Index fell 1.3%, the Shenzhen Component Index fell 0.3%, the non bank financial index fell 3.9%, of which the insurance index fell 4.8%, the brokerage index fell 3.2%, the diversified financial index fell 6.6%, and the hang Seng financial industry index fell 3.6%. Since the beginning of 2022, the Shanghai Composite Index has fallen by 16.3%, the Shenzhen composite index has fallen by 25.8%, and the non bank financial index has fallen by 21.6%, 5.3pct behind the Shanghai Composite Index and 4.2pct ahead of the Shenzhen composite index. The top five stocks in terms of price rise and decline this week: First Capital Securities Co.Ltd(002797) (2.21%), Orient Securities Company Limited(600958) (1.22%), Citic Securities Company Limited(600030) (- 0.96%), Anxin Trust Co.Ltd(600816) (- 2.37%), China International Capital Corporation Limited(601995) (- 2.57%).
Industry key data tracking: the average share based trading volume on Sunday was 997.4 billion yuan. As of April 28, the balance of margin trading and securities lending was 1522348 billion yuan, accounting for 2.54% of the circulating market value of a shares. The trading volume of Liangrong accounts for 6.3% of the trading volume of a shares. As of April 29, the number of pledged shares was 412.1 billion, accounting for 5.10% of the total share capital, down 0.03 PCT from last week; The total amount of market pledge is 3218.7 billion yuan, accounting for 3.83% of the market value of pledge; Equity financing raised capital of 3.5 billion yuan and corporate bond issuance of 50.5 billion yuan.
Major industry news: ① the CBRC solicited public opinions on the measures for the administration of internal control of wealth management companies (Draft for comments). Adhering to the principles of problem orientation, industry benchmarking and risk bottom line, the measures require financial companies to establish a comprehensive, balanced, matched and prudent internal control management mechanism and organizational structure, improve the Hierarchical Authorization Mechanism of investment management, improve the whole process management of transaction system, strengthen the all-round management of key personnel in important positions, strengthen the management of connected transactions and risk isolation, and give full play to the internal supervision role of internal control functional departments and internal audit departments. The regulatory authorities should adhere to the concept of supervision for the people, strengthen continuous supervision, gradually establish the evaluation system of financial management companies, and improve the effectiveness of supervision. ② The CSRC issued the opinions on accelerating the high-quality development of the public fund industry. Specific contents: first, actively cultivate professional asset management institutions. Support differentiated development; Effectively improve the level of governance; Expand the ranks of public fund managers; The opening-up level is steadily high; Strengthen the long-term incentive and restraint mechanism. 2、 Comprehensively strengthen professional capacity-building. Focus on improving the core competence of investment and research; Continuously strengthen compliance risk control capability; Actively encourage products and business integrity and innovation. 3、 Strive to create a good development ecology of the industry. Highlight the cultural concept of planting industry; Focus on improving investors’ sense of gain; Continuously strengthen the joint force of the industry; Increase the proportion of medium and long-term funds; Actively practice social responsibility. 4、 Continuously improve the efficiency of regulatory transformation. Strengthen the construction of industrial infrastructure; Accelerate the transformation of supervision; Continuously improve the efficiency of supervision.
Key issues for next week: stock based turnover in A-share market and marginal improvement of asset side of insurance shares.
Securities: this week, the CSRC issued the opinions on accelerating the high-quality development of the public fund industry, which is expected to promote the high-quality development of the public fund industry and benefit the valuation repair of some securities companies with large fund businesses. We believe that the current valuation of the securities sector deviates from the fundamentals, the valuation is at a historical low, and the repair of the undervalued financial sector under the main line of “steady growth” is still worth looking forward to. 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, which has differentiated competitiveness in the field of Internet wealth management, and Gf Securities Co.Ltd(000776) , which benefits from the development of fund subsidiaries, are recommended.
Insurance: this week, listed insurance companies successively released the first quarterly report data. On the whole, the liability side of life insurance is still under pressure, the number of agents has stabilized, the pressure of comprehensive reform of auto insurance has slowed down, and the investment side is less than expected affected by the fluctuations of the equity market, dragging down the growth of profits. 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 are focused on: China’s property insurance with significantly narrowed risk exposure and AIA, which is at the forefront of channel transformation, and 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 elderly care industry for a long time.
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.
