Core Insights - The report highlights that the short-term changes in broad-based ETF shares are impacting weighted stocks, while long-term regulatory changes are constraining deviations in benchmarks [1][5]. Group 1: Market Performance - As of January 24, 2026, the Shanghai Composite Index rose by 0.84%, while the Shenzhen Component Index increased by 1.11%. The CSI 300 Index fell by 0.62%, and the ChiNext Index decreased by 0.34% [10]. - The average daily trading volume in the Shanghai and Shenzhen markets was 2.80 trillion yuan, reflecting a 19% decrease compared to the previous period [5]. Group 2: Industry Dynamics and Weekly Commentary Insurance Sector - The performance of listed insurance companies is expected to continue high growth, with marginal improvements in long-term interest spreads. The 10-year government bond yield was 1.83%, down 1 basis point from the previous week, indicating a stable economic outlook [11][14]. - The insurance sector is benefiting from regulatory changes that enhance asset-liability management capabilities, which are expected to support high growth in 2026. Key stocks to watch include China Ping An, China Life, and New China Life [14][15]. Securities Sector - The report notes a significant decline in broad-based ETF shares, with the CSI 1000 dropping by 42%, the SSE 50 by 25%, and the CSI 300 by 23%. This decline is expected to have a direct impact on the trading volumes of associated leading stocks [15][19]. - The China Securities Regulatory Commission has introduced new guidelines for public fund performance benchmarks, effective March 1, 2026, aimed at enhancing stability and protecting investor interests [24][28]. Group 3: Key Company Valuations and Financial Analysis - China Ping An (601318.SH) has a current price of 68.40 CNY, with a target value of 85.17 CNY, indicating a buy rating. The expected EPS for 2025 is 8.91 CNY, with a PE ratio of 7.68x [6]. - New China Life (601336.SH) is rated as a buy with a target value of 94.21 CNY, and an expected EPS of 14.04 CNY for 2025, reflecting a PE ratio of 4.96x [6]. - China Pacific Insurance (601601.SH) is also rated as a buy, with a target value of 52.44 CNY and an expected EPS of 6.09 CNY for 2025, resulting in a PE ratio of 6.88x [6].

Core Viewpoint - The recent launch of dedicated insurance sections in the apps of major securities firms marks a significant shift in wealth management strategies, indicating a new phase in the competition among brokerages [2][3][10]. Group 1: Launch of Insurance Sections - Major securities firms such as CITIC Securities, Ping An Securities, and China Merchants Securities have introduced "insurance sections" in their official apps, reflecting a growing focus on insurance products [3][5]. - CITIC Securities' app now features 20 insurance products, including health insurance, life insurance, and annuities, while Ping An Securities offers a wide range of products including health, accident, and pet insurance [3][5]. - The insurance sections are designed to enhance the user experience and provide a comprehensive suite of financial products [2][3]. Group 2: Sales Performance and KPIs - Several brokerage branches in Shenzhen have been assigned specific sales KPIs for insurance products, indicating a push for performance in this new area [9][10]. - Sales targets for individual employees range from 100,000 to 500,000 yuan, but many employees report difficulties in meeting these targets [9][10]. Group 3: Market Context and Expert Insights - The push for insurance product sales by brokerages is seen as a response to the cyclical nature of their traditional revenue streams, with insurance providing a more stable income source [10][12]. - Experts suggest that the integration of insurance products can enhance customer loyalty and lifetime value, positioning brokerages as comprehensive wealth managers rather than just investment advisors [12][14]. - The recent regulatory environment has facilitated this shift, allowing brokerages to expand their offerings and better meet diverse investor needs [11][12]. Group 4: Competitive Landscape - Traditionally, banks have dominated the insurance agency space, but brokerages are leveraging their unique client base, which is more familiar with capital markets, to sell investment-linked insurance products [13][14]. - While brokerages face challenges such as a lack of insurance expertise and service infrastructure, their entry into the insurance market is expected to stimulate innovation and competition within the industry [13][14].

Investment Rating - The report maintains an "Outperform" rating for the non-bank financial sector, indicating a positive outlook compared to the market [2]. Core Insights - The implementation of new regulations for public fund performance benchmarks aims to reshape the industry towards long-term value creation, moving from a "scale-oriented" to a "capability-oriented" approach [14][16]. - The insurance sector shows high efficiency in claims processing, with claim acceptance rates generally above 99%, driven by technology such as AI and big data [43][44]. Summary by Sections 1. Securities Business Overview and Weekly Review - The new public fund performance benchmark regulations will take effect on March 1, 2026, addressing issues like benchmark ambiguity and style drift, thereby enhancing the accountability of fund managers [14][15]. - The report highlights a mixed performance among major indices, with the Shanghai Composite Index at 4,136.16 points, up 0.84% week-on-week, while the non-bank financial index fell by 1.70% [16][19]. 2. Insurance Business Overview and Weekly Review - Recent claims reports from various insurance companies indicate a high claim acceptance rate, with companies like Ping An Life achieving 99.2% [43]. - Despite high acceptance rates, consumer perceptions of "claim difficulties" persist, primarily due to misunderstandings regarding policy terms and inadequate preparation of claim materials [44]. - The average payout for critical illness insurance is around 100,000 CNY, while the average treatment cost for severe illnesses can reach 400,000 CNY, highlighting a significant coverage gap [44]. 3. Market Liquidity Tracking - The central bank's net injection in the open market was 9,795 billion CNY for the week of January 19-23, 2026, indicating ongoing liquidity management efforts [49].

Core Viewpoint - The article discusses the significant transformation in the securities brokerage industry, highlighting the reduction of traditional brokers and the rise of investment advisors as firms shift from sales-driven models to wealth management-focused strategies [2][5]. Group 1: Decline of Securities Brokers - The number of securities brokers has decreased by over 5,000 in the past year, reflecting a broader trend of industry contraction [2]. - From early 2018 to the end of 2025, the number of brokers in the industry dropped from over 90,000 to 22,400, a reduction of more than 68,000 brokers over eight years [3]. - Major firms like CICC and China Merchants Securities have seen drastic reductions in their broker counts, with CICC achieving a "zero" broker count and China Merchants reducing from over 800 to just 13, a decline of over 90% [4]. Group 2: Factors Driving Change - The shift from "transactional trading" to wealth management has led to a reevaluation of talent needs, with a focus on professional skills over sheer numbers [3][4]. - Increased market competition and the decline in commission rates have pressured traditional revenue streams, exacerbated by reforms in public fund fees [4]. - The advancement of financial technology has reduced the demand for traditional broker roles, as online services and automated tools take precedence [4]. Group 3: Rise of Investment Advisors - The number of investment advisors has surged, increasing from over 40,000 in 2018 to 86,000 by the end of 2025, with a notable addition of over 5,000 advisors in the past year [6]. - Leading firms are investing in expanding their advisory teams, with companies like Huatai Securities and CITIC Securities increasing their advisor counts significantly [6]. - Smaller firms are also adopting strategies to enhance their advisory capabilities, focusing on reducing interchangeable roles while boosting the quality and scale of their advisory teams [6]. Group 4: Transition from Brokers to Advisors - Many investment advisors are former brokers transitioning into advisory roles, with firms assessing potential candidates based on their qualifications and client service abilities [7]. - The core competitive advantage in advisory services lies in building a highly skilled team capable of providing tailored solutions and asset management [7]. - The industry faces challenges in bridging the gap between traditional sales roles and the more complex demands of asset management and client relationship building [7]. Group 5: Evolving Skill Requirements - The current market demands investment advisors to possess skills in asset allocation, client relationship management, and the use of digital tools [8]. - Firms are developing training programs to enhance advisor capabilities, focusing on both technical skills and client engagement strategies [8]. - Companies are implementing structured support systems to ensure consistent delivery of strategies and insights across their advisory teams [8].

Monetary Policy - The central bank will implement a moderately loose monetary policy in 2026, with room for rate cuts and reserve requirement ratio reductions. The focus will be on maintaining ample liquidity and managing expectations for the RMB exchange rate [2][5]. Fund Management - Multiple funds have announced fee reductions to lower investment costs for investors. For instance, 华夏基金 reduced the management fee of its financial technology ETF from 0.50% to 0.15% and the custody fee from 0.1% to 0.05% [2][5]. Banking Sector - The interest rates on large time deposits from local small and medium-sized banks have fallen below 2%. It is predicted that the maturity scale of time deposits over one year will be around 50 trillion yuan in 2026 [3][5]. - The wealth management business of small and medium-sized banks is experiencing changes, with reports indicating that the scale of raised funds is lower than that of maturing funds [3][5]. Real Estate Market - The second-hand housing market in several regions continues to show a "tail-up trend" at the beginning of 2026, with notable recovery in transaction volumes in major cities like Beijing, Shanghai, and Shenzhen [3][5]. Fiscal and Financial Policies - A package of policies promoting domestic demand through fiscal and financial collaboration has been introduced, including a 500 billion yuan special guarantee plan for private investment and interest subsidies for loans to small and micro enterprises [5][6]. Global Market Trends - Concerns over the Greenland crisis and fiscal pressures have triggered a global bond market sell-off, with significant increases in yields for long-term bonds in Japan and the U.S. [6][6]. - NVIDIA's CEO highlighted that AI has initiated the largest infrastructure buildout in human history, requiring substantial investments and resources [6][6].

Core Viewpoint - The non-bank financial sector is underweight, with a total underweight of 3.08 percentage points, despite an increase in holdings in the fourth quarter, indicating potential investment opportunities as resident funds enter the market under a low interest rate environment [1][4]. Group 1: Brokerage Sector - The brokerage sector has received an increase in allocation, with public funds (excluding passive index funds) raising their holding ratio from 0.85% to 1.08%, still underweight by 2.30 percentage points [2]. - The Wind All A Index rose by 0.97% in the fourth quarter, with a quarterly stock fund transaction volume of 24.5 trillion, indicating active market trading that has led to increased fund allocation to the brokerage sector [2]. - Notable individual stock increases include Citic Securities' holding ratio rising from 0.1687% to 0.3132% and Huatai Securities' from 0.1579% to 0.1989% [2]. Group 2: Insurance Sector - The allocation ratio for the insurance sector significantly increased from 1.03% to 2.13%, with an underweight of 0.33%, and the insurance index rose by 23.42% in the fourth quarter [3]. - Individual stock increases include China Life's holding ratio rising from 0.019% to 0.020%, Ping An's from 0.68% to 1.449%, and China Pacific Insurance's from 0.22% to 0.422% [3]. - The expectation of continued capital inflow and a focus on undervalued targets supports the recommendation for insurance stocks [3]. Group 3: Multi-Financial and Fintech Sectors - The allocation ratio for the multi-financial and fintech sectors decreased from 0.204% to 0.145% [3]. - Individual stocks such as Lakala and Yuexiu Financial Holdings received increased allocations, with holding ratios rising from 0% to 0.0027% and 0% to 0.0025%, respectively [3]. - The outlook remains positive for financial information services, third-party payments, and equity investment opportunities due to ongoing policy support for capital inflow and advancements in digital currency and AI applications [3]. Group 4: Investment Recommendations - The non-bank sector remains underweight, with a total underweight of 3.08 percentage points, suggesting four key investment opportunities: 1) Wealth management opportunities in fintech and brokerage due to resident funds entering the market [4]. 2) Valuation recovery opportunities in the insurance sector as interest rates stabilize [4]. 3) Profit enhancement opportunities for third-party payment companies from the expansion of digital currency scenarios [4]. 4) Broader exit channels for equity investment institutions due to an increase in IPOs in the tech sector [4].

Core Viewpoint - The report from CITIC Securities anticipates continued growth in the computing power sector driven by sustained capital expenditures (Capex) from major CSPs, increasing demand for tokens, and continuous product capability enhancements [1] Group 1: Performance Outlook - The computing power sector's performance is expected to maintain a favorable growth trajectory through 2025 [1] - AI applications are projected to show structural highlights, particularly in areas such as AI fintech, AI healthcare, and AI data, with general agent applications also demonstrating resilient growth [1] - Overall profitability in the sector is likely to improve significantly [1] Group 2: Future Projections - Looking ahead to 2026, the computing power sector is expected to continue its favorable conditions, with AI applications poised to reach pivotal opportunities [1]

Core Viewpoint - The pre-calculation power sector is expected to experience continuous growth in 2025 due to ongoing Capex from major CSPs, increasing token demand, and enhanced product capabilities, with structural highlights in AI applications such as AI fintech, AI healthcare, and AI data [1][4] Revenue Side - The pre-calculation power sector is projected to maintain high growth in 2025, driven by sustained Capex from major CSPs and the release of token demand, with notable performance in AI applications across various fields [1][4] Profit Side - Profit growth in the pre-calculation power sector is expected to align with revenue growth in 2025, with some AI application companies showing high profit elasticity, and most previously loss-making companies either narrowing losses or turning profitable, indicating a significant improvement in overall profitability [2] 2026 Investment Outlook - The competition in domestic AI is transitioning from single-card performance to system-level capabilities, with super-node systems becoming crucial for future competition; the development of computing power is highly certain due to ongoing Capex investments and token demand [2] - AI applications are anticipated to reach a turning point, with model capability enhancements and new overseas opportunities, as domestic AI companies accelerate their international market presence [2] - Domestic policies are expected to continue supporting technology in sectors like satellites, healthcare, and consumer markets, marking a significant turning point for domestic AI [2]

Core Viewpoint - The report from CITIC Securities indicates that the computing power sector is expected to continue its growth into 2026, driven by sustained capital expenditures from major CSP companies, increasing token demand, and continuous product capability enhancements [1] Group 1: Computing Power Sector Outlook - The computing power sector's performance in 2025 is projected to remain strong due to ongoing capital expenditures from major CSP companies [1] - The demand for tokens is anticipated to keep increasing, contributing to the sector's growth [1] - Overall profitability in the sector is expected to improve significantly [1] Group 2: AI Application Highlights - AI applications are showing structural highlights, particularly in areas such as AI fintech, AI healthcare, and AI data, which are performing exceptionally well [1] - General agent applications are also experiencing resilient growth [1] - The AI application sector is poised to reach a turning point of opportunity [1]

Investment Rating - The report assigns an "Overweight" rating to the industry, indicating a positive outlook for investment opportunities in the non-bank financial sector [5][14]. Core Insights - The report highlights that the non-bank sector is currently underweight by 3.08 percentage points, despite an increase in holdings during the fourth quarter of 2025. It emphasizes the potential for profit improvement and low valuations in non-bank stocks due to the influx of household funds into the market [3][5]. - The report notes a significant increase in the allocation to the insurance sector, with the proportion rising from 1.03% to 2.13%, while the insurance index saw a substantial increase of 23.42% in the fourth quarter [5][8]. - The report suggests that the brokerage sector has also received increased allocations, with public fund holdings rising from 0.85% to 1.08%, although it remains underweight by 2.30 percentage points [5][8]. Summary by Sections Non-Bank Sector - The non-bank sector remains underweight overall by 3.08 percentage points, with a positive outlook for long-term capital inflows and wealth management opportunities [5][8]. - Specific recommendations include increasing holdings in companies such as Jiufang Zhituo Holdings, Tonghuashun, Guoxin Securities, and others, as they are expected to benefit from the ongoing market dynamics [5][8]. Insurance Sector - The insurance sector's allocation has increased significantly, with a focus on low-valuation stocks as capital continues to flow into the market. The report recommends increasing holdings in China Life, Ping An, and China Pacific Insurance [5][8]. Brokerage Sector - The brokerage sector has seen a rise in public fund holdings, with notable increases in individual stocks like CITIC Securities and Huatai Securities. The report suggests that the retail business share is likely to improve, making these stocks attractive [5][8]. Financial Technology and Diversified Finance - The report indicates a decrease in the allocation to diversified finance and financial technology sectors, but highlights potential investment opportunities in companies like Lakala and Yuexiu Financial Holdings due to ongoing policy support and technological advancements [5][8].