The implementation of new regulations for the high-quality development of public funds is expected to promote the medium and long-term sustainable development of the industry. The CSRC issued the measures for the supervision and administration of public fund managers and its supporting rules, which improved the supervision requirements of public fund managers from the whole chain of “access – internal control – operation – Governance – Exit – supervision”, which is a powerful institutional guarantee for the implementation of high-quality development opinions of the public fund industry. The main points include: 1) establish the whole chain and improve the supervision system; 2) Strengthen the equity management of fund management companies; 3) Moderately relax the restrictions on the number of public offering licenses; 4) Improve the compliance and risk control ability of the main body of the organization; 5) Short term assessment and excessive incentive are strictly prohibited; 6) Support the differentiated development of public funds; 7) Establish a market-oriented exit mechanism for public fund managers. This new regulation is the specific policy implementation of the high-quality development opinions of the public fund industry, which is expected to accelerate the transformation and development of the public fund industry, bring the cleaning and shuffling effect to the industry, and benefit the medium and long-term sustainable development of the industry.
The heavy launch of scientific and technological innovation corporate bonds marks another milestone in the exploration of China’s capital market to support the development of scientific and technological innovation enterprises. In order to further strengthen the precise support and effective allocation of the bond market to China’s scientific and technological innovation field, the Shanghai Stock Exchange issued and implemented the guidelines for scientific and technological innovation bonds. The launch of the guidelines marks the official launch of scientific and technological innovation corporate bonds and helps promote the bond market of Shanghai Stock Exchange to further play its function of serving the national innovation driven development strategy and industrial transformation and upgrading. The innovative launch of sci-tech innovation bonds is undoubtedly a new measure for China’s capital market to support the development of sci-tech innovation enterprises. It helps to fully stimulate the participation enthusiasm of market subjects, guide qualified issuers, especially high-quality private enterprises and other main forces of China’s innovation and development to issue bonds for financing, and promote direct bond financing to play a more active role in helping the national science and technology innovation strategy.
Life insurance premiums showed differentiation, and the epidemic dragged down the growth of auto insurance. The order of cumulative year-on-year growth rate of total premiums of listed life insurance in the first four months of 2022 is as follows: PICC (17.2%) CPIC (4.0%) Xinhua (3.8%) Ping An (- 2.4%) Guoshou (- 2.7%). The performance of single month in April is differentiated. Xinhua (+ 12.9%), PICC (+ 5.5%), Taibao (+ 1.9%) has achieved positive year-on-year growth, while Ping An (- 3.0%) and Guoshou (- 2.1%) are under significant pressure. We believe that it is mainly due to the obstruction of agent development and the aggravation of team loss caused by the multi-point spread of the epidemic. Although the sales market of increased life insurance is hot, we expect the impact of the epidemic to continue to deepen in the second quarter, and we will continue to pay attention to the increase of follow-up agents and the improvement of production capacity. The cumulative year-on-year growth rate of total premiums of listed property insurance in the first four months of 2022 is in the following order: CPIC (10.6%) PICC (10.3%) Ping An (8.4%). However, from the marginal point of view, the growth rate in April fell significantly month on month, mainly due to the decline in the growth rate of auto insurance. The single month year-on-year growth rate of PICC’s auto insurance business in April was – 1.9%, dragging down the cumulative growth rate to 7.6%. We expect that the new car sales in the second quarter will also be directly affected by the epidemic, but the scale advantage and market share improvement of large insurance enterprises are expected to maintain.
In terms of diversified finance, A-Shares recommend Zhejiang Huatie Emergency Equipment Science & Technology Co.Ltd(603300) ( Zhejiang Huatie Emergency Equipment Science & Technology Co.Ltd(603300) , buy) as the leader of high-altitude operation platform lessee and Sichuan Shuangma Cement Co.Ltd(000935) ( Sichuan Shuangma Cement Co.Ltd(000935) , overweight) as the subject of private equity investment management in the stage of high growth and development. It is recommended to pay attention to Jiangsu Financial Leasing Co.Ltd(600901) ( Jiangsu Financial Leasing Co.Ltd(600901) , not rated); Hong Kong stocks recommend Far East Hongxin, the leader of financial leasing (03360, buy).
In terms of securities companies, favorable capital market policies and institutional innovation are still the main theme of the current sector, maintaining a positive rating. In difficult market times, we should stick to the clear and clear undervalued value leader of the main line, still advocate the main line of derivatives, recommend Citic Securities Company Limited(600030) ( Citic Securities Company Limited(600030) , overweight), and suggest paying attention to China International Capital Corporation Limited(601995) (03908, not rated); Secondly, with the release of favorable public fund policies, it is recommended to pay attention to the low-level layout opportunity of the main line of large public offering, recommend Gf Securities Co.Ltd(000776) ( Gf Securities Co.Ltd(000776) , buy), and pay attention to China Industrial Securities Co.Ltd(601377) ( China Industrial Securities Co.Ltd(601377) , increase).
In terms of insurance, the transformation of life insurance liabilities is still advancing, and the decline of team size and the adjustment of product structure lead to the corresponding increase of production capacity. However, we should continue to pay attention to the production capacity climbing under the stable scale and the release of demand after the activation of security awareness; The logic of both quantity and quality of auto insurance is solid, the growth momentum of non auto insurance is strong and the space is broad, and the opportunity of property insurance allocation is reiterated; There is not much pessimistic expectation on the investment side. Maintain the positive rating of the industry, and follow-up suggestions focus on China Property Insurance (02328, not rated), Ping An Insurance (Group) Company Of China Ltd(601318) ( Ping An Insurance (Group) Company Of China Ltd(601318) , buy), AIA (01299, not rated).
Risk tips
The suppression of systemic risk on the performance and valuation of securities business; Stricter supervision than expected;
The long-term interest rate is lower than expected; Related policy risks in diversified financial field.
