Key investment points
Policies work together to promote the repair of the real economy and promote the long-term improvement of the capital market. On May 20, the CSRC issued 23 measures to support the real economy, and strengthened policy support in enterprises’ application for initial public offering, listing on the Beijing stock exchange, refinancing, mergers and acquisitions, corporate bonds and asset securitization products, so as to help enterprises affected by the epidemic speed up their recovery; Guide securities companies to negotiate with customers with difficulties in due repayment of equity pledge for an extension of 3 to 6 months; Guide the Shanghai and Shenzhen stock exchanges to launch scientific and technological innovation corporate bonds and use innovative financing means to support enterprises in the field of scientific and technological innovation. At the same time, the CSRC and China Securities Depository and Clearing Corporation have clearly introduced the differentiated mechanism to set the collection proportion of the minimum settlement reserve, and reduce the proportion of the minimum settlement reserve, which will reduce the occupation of funds for securities companies and help to improve the fund use efficiency of securities companies.
The valuation of the securities sector has reached an absolute historical low and has long-term investment value. On Friday, the central bank lowered the one-year and five-year LPR interest rates, pushing down the market capital interest rate and stimulating market vitality. On Friday, the securities sector rose 1.92%, with a single day turnover of 920.6 billion yuan, a significant increase over the week. Since 2015, there have been relatively few trading opportunities in the securities sector, and the valuation center has gradually declined due to significant changes in the profit model of securities companies. At the same time, due to the sharp decline of the overall market since 2022, the valuation of the price to book ratio of the securities sector is 1.27 times, which has reached an absolute low in history. The prime time has appeared. The securities industry is expected to benefit from the performance improvement after the market warms up, bring the valuation improvement, and give the industry a rating of “leading market-a”.
Industry data:
Stock market performance: as of May 20, the gem index closed down 27.25%, the CSI 500 closed down 19.43%, the CSI 300 index closed down 17.46%, and the Shanghai Composite Index closed down 13.55%.
Bond market performance: as of May 20, the China bond – total price (gross value) index closed down 0.04% from the beginning of the year.
Commodities: as of May 13, the commodity index closed at 207.87, up 15.07% from the beginning of the year.
Trading volume: last week’s turnover was 4.08 trillion yuan, with an average daily turnover of 0.81 trillion yuan, down – 2.42% month on month.
New investors: in April 2022, 1256700 new investors were added, with a month on month ratio of – 45.41%.
Risk tips
The situation in Russia and Ukraine continues to deteriorate; The secondary market fell sharply; The epidemic situation exceeded expectations; The capital market reform was not as expected.
