Interpretation of important events this week:
This week, the overall performance of the market declined. The CSI 300 index fell 2%, of which the brokerage sector rose 2.68% and the insurance sector rose 4.34%. The overall performance was stronger than the market. This week, the stock trading volume of the two cities was 1.2 trillion, an increase of 2.6% month on month. The balance of the two financial institutions remained at 1.80 trillion, a slight decline month on month. This week, when the central bank cut interest rates, the CSRC held a 2022 system working meeting to reaffirm the full implementation of the registration system and further promote the reform of the capital market. At the same time, a number of listed securities companies disclosed the performance express in 2021, which generally achieved an increase of more than + 20%. The growth rate of net profit of head securities companies such as CITIC / Everbright / Guojun / China Merchants returned to the parent company reached + 54% / + 50% / + 35% / + 22% respectively, and Dongcai securities + 67% year-on-year, with a bright overall performance. At the current time point, the securities industry has excellent fundamentals and is protected by both liquidity and policy. For the first quarter, we continue to be optimistic about the market of the sector. We suggest investors to focus on Gf Securities Co.Ltd(000776) , Orient Securities Company Limited(600958) with greater flexibility in wealth management, as well as Citic Securities Company Limited(600030) , the leading securities firm with undervalued value affected by share allotment. For the insurance sector, insurance companies are under great pressure to make a good start. It is expected that the marginal improvement of asset side fundamentals will become the driving force to promote the recovery of insurance companies’ share prices in the second quarter of next year. The relaxation of financing of real estate companies is expected to promote the improvement of credit risk concerns. It is suggested to lay out high-quality leading insurance companies with historically low valuation.
Sub segment view:
(1) securities companies: Recently, a number of listed securities companies disclosed performance letters, which generally achieved an increase of more than + 20%, and the performance of leading securities businesses increased by more than market expectations. The fundamentals of the securities sector are excellent. Benefiting from the multiple measures taken by the central bank to protect liquidity and the continuous implementation of the favorable policies of capital market reform, we continue to be optimistic about the market of the sector at the beginning of the year. We suggest paying attention to the main line of wealth management, such as Gf Securities Co.Ltd(000776) , Orient Securities Company Limited(600958) , and the leading undervalued securities firm Citic Securities Company Limited(600030) which affects the clearing of shares
(2) insurance sector: the marginal changes in insurance fundamentals in the short-term market focus on the mitigation of the real estate financing environment, driving the improvement of the asset side fundamentals of insurance enterprises. Considering that the valuation of the insurance sector is at a low level and the fundamentals are expected to usher in marginal improvement, it is suggested to lay out the leading insurance companies at a low level. With regard to the subject matter, it is suggested to focus on AIA, which benefits from accelerating the expansion of the Chinese market and the dividends of insurance enterprises opening to the outside world.
(3) diversified financial sector: relaxing the restrictions on the investment scope of insurance funds in venture capital institutions will help insurance funds increase the investment scale of venture capital institutions and significantly improve the development of venture capital industry. It is suggested to focus on Lenovo holdings, which is backed by the industrial resources of the Chinese Academy of Sciences and has high-quality investment institutions such as Junlian and Hony.
