Core Viewpoint - The recent notification from the National Financial Regulatory Administration emphasizes the implementation of a "reporting and execution consistency" system in the non-auto insurance sector, aiming to enhance rate management and ensure transparency in premium income management, effective from November 1, 2025 [1][2]. Summary by Sections Regulatory Changes - The notification introduces a comprehensive "reporting and execution consistency" system for non-auto insurance, which mandates that all actual terms and rates must align with those submitted to regulators [2]. - The notification consists of 12 key points, including optimizing assessment mechanisms, strengthening rate management, and regulating operational expenses [2]. Industry Response - Major insurance companies, including China Insurance and Ping An Property & Casualty, have established dedicated teams to ensure compliance with the new regulations and are actively preparing for the implementation [4][5]. - The industry views the notification as a crucial step towards transitioning from a "scale-oriented" to a "quality-oriented" business model, promoting rational competition and sustainable development [3]. Market Dynamics - The non-auto insurance market has been experiencing rapid growth, nearing half of the total property insurance premiums, but has also faced issues such as excessive competition and high commission fees [1][2]. - The notification aims to address these challenges by enforcing stricter controls on fees and ensuring that insurance companies adhere to transparent practices, thereby protecting consumer rights [3][5].

Core Insights - The insurance industry plays a crucial role in economic development and improving social welfare, with total assets exceeding 40 trillion yuan and cumulative payouts reaching 9 trillion yuan, marking a 61.7% increase compared to the "13th Five-Year Plan" period [1] - During the "14th Five-Year Plan" period, the insurance sector has focused on high-quality development, enhancing its comprehensive strength and achieving new breakthroughs in serving the real economy and social welfare [1][3] Group 1: Economic Impact - The insurance industry has provided risk protection across various sectors, contributing to national strategies and addressing weak links in the economy [1] - Cumulative risk protection provided by the insurance industry during the "14th Five-Year Plan" period has exceeded 10 trillion yuan, supporting over 3,600 innovation application projects [2] Group 2: Technological Innovation - China Life Insurance has developed over 200 technology insurance products, providing risk protection exceeding 4 trillion yuan since the establishment of the integrated circuit co-insurance system [2] - The insurance sector has supported significant projects such as the Long March 8 remote sensing satellite and the domestically produced C919 large passenger aircraft, with over 300 billion yuan in coverage [2] Group 3: Social Welfare - The insurance industry has expanded its capacity to improve and guarantee social welfare, with major projects covering over 12.2 billion urban and rural residents for critical illness insurance and 1.8 billion people for long-term care insurance [3] - Commercial health insurance has provided economic compensation of 1.8 trillion yuan to those affected by illnesses over the past five years [3] Group 4: Disaster Risk Management - The insurance industry has established a national disaster risk map and a digital risk warning network, with cumulative payouts exceeding 150 billion yuan for disasters such as floods and earthquakes during the "14th Five-Year Plan" period [4] - From 2024, catastrophe insurance will cover common natural disasters in China, with a minimum coverage amount doubled, providing 22.36 trillion yuan in catastrophe risk protection for 64.39 million households [4] Group 5: Comprehensive Insurance Services - The insurance sector has formed a comprehensive insurance service system focusing on risks related to aging, illness, disasters, and poverty, optimizing the allocation of risk resources across society [5]

二、中国人民人寿保险股份有限公司应按照有关规定及时办理变更及许可证换领事宜。 2025年10月9日，国家金融监督管理总局保定监管分局发布批复称，《中国人民人寿保险股份有限公司 河北省分公司关于中国人民人寿保险股份有限公司唐县支公司变更营业场所的请示》（人保寿险冀发 〔2025〕267号）收悉。经审核，现批复如下： 一、同意中国人民人寿保险股份有限公司唐县支公司将营业场所变更为：河北省保定市唐县迎宾大街西 侧尧和美居住宅小区3号楼2-3号底商。 ...

二、中国人民财产保险股份有限公司应按照有关规定及时办理变更及许可证换领事宜。 一、同意中国人民财产保险股份有限公司三工镇营销服务部将营业场所变更为：新疆昌吉回族自治州昌 吉市三工镇下营盘村十字路口东南角便民服务站。 2025年9月30日，国家金融监督管理总局昌吉监管分局发布批复称，《中国人民财产保险股份有限公司 昌吉回族自治州分公司关于昌吉回族自治州分公司三工镇营销服务部营业场所变更的请示》（昌人保财 险发〔2025〕112号）收悉。经审核，现批复如下： ...

一、同意中国人民财产保险股份有限公司昌吉车管所营销服务部变更为：新疆昌吉回族自治州昌吉市绿 洲路街道屯河社区和谐时代广场A座13层1302室（25区6丘7栋）。 二、中国人民财产保险股份有限公司应按照有关规定及时办理变更及许可证换领事宜。 2025年9月30日，国家金融监督管理总局昌吉监管分局发布批复称，《中国人民财产保险股份有限公司 昌吉州分公司关于昌吉车管所营销服务部变更营业场所的请示》（昌人保财险发〔2025〕111号）收 悉。经审核，现批复如下： ...

Investment Rating - The report maintains a "Positive" investment rating for the industry [9] Core Insights - The upcoming Q3 reports are expected to show continued high growth in brokerage performance, enhancing the sector's allocation value. The insurance sector reflects a trend of deposit migration, increased equity allocation, and improved new policy costs, leading to a higher certainty of long-term ROE improvement and accelerated valuation recovery. Overall, the cost-effectiveness of allocations is gradually increasing [2][6] - Recommendations include companies with stable profit growth and dividend rates such as Jiangsu Jinzu, China Ping An, and China Pacific Insurance, as well as firms with significant advantages in business models and market positions [6] - The report recommends specific stocks including Xinhua Insurance, China Life, Hong Kong Stock Exchange, CITIC Securities, Dongfang Wealth, Tonghuashun, and Jiufang Zhitu Holdings based on performance elasticity and valuation levels [2][6] Market Performance - The non-bank financial index increased by 0.5% last week, with a relative excess return of +1.0% compared to the CSI 300, ranking in the middle of the industry [7] - Year-to-date, the non-bank financial index has risen by 7.4%, but with a relative excess return of -9.9% compared to the CSI 300, indicating a lower ranking [7] - The average daily trading volume in the market has increased to 26,029.82 billion yuan, up 18.98% week-on-week, with a daily turnover rate of 2.71%, up 42.99 basis points [7] Key Industry News & Company Announcements - The China Banking and Insurance Regulatory Commission issued a notice on strengthening the regulation of non-auto insurance business [8] - China Pacific Insurance's Chief Actuary Zhang Yuanhan has resigned [8]

Investment Rating - The report maintains an "Overweight" rating for the non-bank financial industry [1] Core Insights - The report highlights the regulatory push for high-quality development in health insurance and the implementation of "reporting and operation integration" in non-auto insurance, which is expected to improve industry profitability [1][4] Summary by Sections Non-Bank Financial Subsector Performance - In the recent two trading days (October 9-10, 2025), all non-bank financial sub-sectors outperformed the CSI 300 index, with the securities sector rising by 0.55%, insurance by 0.72%, and diversified finance by 1.68%, while the overall non-bank financial sector increased by 0.71% [9][10] Non-Bank Financial Subsector Views Securities - Trading volume has increased year-on-year, with the average daily trading volume for October 2025 reaching CNY 30,222 billion, a 35.10% increase compared to October 2024 [14] - The margin trading balance as of October 9, 2025, was CNY 24,455 billion, up 58.00% year-on-year [14] - The average price-to-book (PB) ratio for the securities industry is projected at 1.4x for 2025 [19] Insurance - The regulatory body has issued guidelines to promote high-quality development in health insurance, aiming for a multi-tiered health insurance market by 2030 [21] - Health insurance premiums totaled CNY 7,598 billion from January to August 2025, reflecting a 2.4% year-on-year growth [25] - The implementation of "reporting and operation integration" in non-auto insurance is expected to enhance profitability, with total premiums for non-auto insurance reaching CNY 6,195 billion, accounting for 50.8% of total premiums [24] Diversified Finance - The trust industry saw its asset scale reach CNY 29.56 trillion by the end of 2024, a 23.58% increase year-on-year, although profits declined significantly [32] - The futures market recorded a trading volume of 839 million contracts and a turnover of CNY 65.08 trillion in August 2025, marking year-on-year increases of 13.98% and 21.38%, respectively [35] Industry Ranking and Key Company Recommendations - The report ranks the insurance sector highest, followed by securities and diversified finance, recommending companies such as China Ping An, New China Life, China Pacific Insurance, CITIC Securities, Tonghuashun, and Jiufang Zhitu Holdings [48]

Core Viewpoint - The essence of implementing "reporting and operation integration" and "payment upon issuance" is to guide the non-auto insurance industry out of irrational competition and shift from extensive development to value development [1][9]. Group 1: Regulatory Changes - The Financial Regulatory Bureau has issued a notice focusing on the non-auto insurance sector, addressing issues of irregular operations and irrational competition, and promoting high-quality development [1][2]. - The notice will be implemented starting November 1, 2025, and requires insurance companies to adopt "reporting and operation integration" and "payment upon issuance" [1][2]. - "Reporting and operation integration" mandates that insurance companies strictly adhere to approved insurance terms and rates, ensuring consistency between recorded content and actual operations [2][3]. Group 2: Industry Performance - In the first eight months of 2025, total premium income for property insurance companies reached 1.22 trillion yuan, with non-auto insurance accounting for 619.5 billion yuan, representing 50.77% of total premiums [2]. - Non-auto insurance has shown faster growth compared to auto insurance, increasing its share from 26%-27% in 2013-2016 to over 50% currently [4]. - Despite this growth, non-auto insurance profitability remains weaker than auto insurance, with a comprehensive cost ratio of 97.0% for non-auto insurance compared to 94.2% for auto insurance [4][5]. Group 3: Implementation and Industry Response - Major insurance companies like China Life and Ping An Property Insurance have established task forces to implement the requirements of the notice [1][7][10]. - The notice also emphasizes the need for insurance companies to manage premium income more effectively and avoid practices like issuing policies before receiving full payment, which can lead to bad debt risks [6][10]. - Companies are expected to lower the assessment weight on premium scale and market share while increasing the focus on compliance, quality, and consumer rights protection [9][10].

Investment Rating - The report maintains a positive outlook on the non-bank financial sector, indicating an "Overweight" rating for the industry, suggesting it will outperform the overall market [4][55]. Core Insights - The report highlights strong growth in the brokerage sector, with a significant increase in new A-share accounts and trading volumes, indicating a robust market environment. The net profit for the brokerage sector is expected to show high year-on-year growth for the first nine months of 2025 [4]. - The insurance sector is undergoing regulatory changes aimed at improving profitability, particularly in non-auto insurance, which is expected to benefit leading companies in the industry [4]. - The report identifies three main investment themes in the brokerage sector: 1) Stronger institutions benefiting from improved competition, 2) Brokerages with high earnings elasticity, and 3) Companies with strong international business capabilities [4]. Market Review - The Shanghai Composite Index rose by 1.47% during the period from September 29 to October 10, 2025, while the non-bank index increased by 3.18%. The brokerage sector saw a rise of 4.42%, while the insurance sector increased by 0.89% [7]. - The average daily trading volume for the Shanghai and Shenzhen stock exchanges reached 26,034.09 billion yuan, reflecting a year-on-year increase of 56.08% [15][31]. Non-Bank Industry Data - As of October 10, 2025, the financing balance in the margin trading market was 24,455.47 billion yuan, showing a year-on-year increase of 31.2% [15]. - The report notes that the average daily trading volume for the first nine months of 2025 was 26,034.09 billion yuan, indicating a vibrant trading environment [31]. Regulatory Developments - The Financial Regulatory Bureau has implemented a new framework for non-auto insurance, focusing on improving underwriting profitability and establishing stricter fee management and compliance measures [4][17]. - The report mentions the central bank's liquidity measures, including significant net injections through various monetary policy tools, which aim to maintain market liquidity [16][19].

Investment Rating - The report maintains a "Positive" outlook on the non-bank financial sector [1] Core Views - The report highlights a continuation of strong growth in the brokerage sector, with a significant increase in net profits expected for the first nine months of 2025. Key metrics include a 61% year-on-year increase in new A-share accounts and a 203% increase in average daily stock trading volume in September 2025 [2][5] - The brokerage sector is currently undervalued, with a price-to-book (PB) ratio of 1.48, placing it in the 47.8th percentile over the past decade [2] - The report notes a favorable market environment supporting continued high growth in brokerage performance, with specific recommendations for leading firms and those with strong international business capabilities [2][7] Summary by Sections Market Review - The Shanghai Composite Index rose by 1.47% during the period from September 29 to October 10, 2025, while the non-bank index increased by 3.18%. The brokerage, insurance, and diversified financial sectors reported gains of 4.42%, 0.89%, and 0.52%, respectively [5][6] Non-Bank Sector Insights - The report indicates that the insurance sector is benefiting from the implementation of a "de-involution" policy framework for non-auto insurance, which is expected to improve underwriting profitability for leading firms [2][16] - Specific investment recommendations include firms that are expected to benefit from improved competitive dynamics and those with strong earnings elasticity [2][7] Key Data Tracking - As of October 10, 2025, the average daily trading volume in the stock market was 26,034.09 billion yuan, reflecting an 18.99% increase from the previous period [14][32] - The report also tracks significant metrics such as the balance of margin financing and securities lending, which stood at 24,455.47 billion yuan as of October 9, 2025, marking a 31.2% increase from the end of 2024 [14][39]