Investment Rating - The report maintains a positive outlook on the brokerage sector, recommending stocks such as Dongfang Securities, GF Securities, Huatai Securities, and China Galaxy [4][3][18]. Core Insights - The report highlights that the brokerage sector is expected to benefit directly from the increased attractiveness of the equity market, particularly in wealth management and asset management businesses [4][3]. - The insurance sector is anticipated to undergo a systematic value reassessment in 2026, driven by rising long-term interest rates and continued investment from insurance funds [4][3]. Market Performance - The Shanghai and Shenzhen 300 Index closed at 4,526.66 with a weekly increase of 1.64%, while the non-bank index rose to 1,932.15, up 0.68% [7][4]. - The brokerage sector index increased by 0.74%, while the insurance sector index saw a rise of 0.20% [7][4]. Key Data Points - As of November 28, 2025, the average daily trading volume in the Shanghai and Shenzhen markets was 19,147.38 billion [18][46]. - The financing balance in margin trading reached 24,720.45 billion, reflecting a year-on-year increase of 32.6% [18][49]. - The insurance industry reported a total premium income growth, with significant contributions from new business value (NBV) [4][3]. Individual Stock Highlights - In the insurance sector, notable A-share performances included China Life (0.09%) and New China Life (0.41%), while AIA Group in H-shares saw a significant increase of 4.95% [9][4]. - Among brokerages, Guosheng Securities led with a weekly increase of 3.68%, followed by Industrial Securities (3.36%) and Northeast Securities (2.45%) [9][4]. Regulatory and Market Developments - The report notes the expansion of the pilot program for optimizing brokerage account management, which now includes 20 qualified brokerages [21][4]. - The private equity fund sector reached a record high of 22.05 trillion, with a notable increase in new registrations [19][4].

Investment Rating - The report maintains a positive outlook on the non-bank financial sector, particularly highlighting the potential benefits for brokerage firms and insurance companies in the upcoming year [3][4]. Core Insights - The report emphasizes the expected inflow of passive funds into newly included stocks in major indices, which could enhance liquidity and market performance for these stocks [4]. - It identifies key trends for 2026, including a shift in insurance companies' focus towards asset-liability matching and the stabilization of core business indicators due to new regulatory standards [4]. - The report recommends specific brokerage firms such as Dongfang Securities, GF Securities, Huatai Securities, and China Galaxy, as well as insurance companies like China Life and Ping An, based on their competitive positioning and growth potential [4]. Summary by Sections Market Performance - The Shanghai Composite Index closed at 4,526.66 with a weekly increase of 1.64%, while the non-bank index rose to 1,932.15, reflecting a 0.68% increase [7]. - The brokerage sector index reported a 0.74% increase, and the insurance sector index saw a 0.20% rise [7]. Brokerage Sector Insights - Notable stocks in the brokerage sector included Guosheng Securities and Xinyi Securities, which saw increases of 3.68% and 3.36%, respectively [9]. - The average daily trading volume for the Shanghai and Shenzhen markets was 17,370.85 billion, a decrease of 6.87% week-on-week, but a year-to-date increase of 61.11% [20]. Insurance Sector Insights - The insurance sector is expected to experience a systematic revaluation in 2026, driven by long-term interest rate increases and continued investment from insurance funds into the stock market [4]. - The report highlights the performance of major insurance companies, with A-shares like China Life and Ping An showing modest increases [9]. Key Data Points - As of November 28, 2025, the average daily trading volume was 19,147.38 billion, and the margin trading balance was 24,720.45 billion, reflecting a year-on-year increase of 32.6% [51][20]. - The report notes that the total market value of private equity funds reached 22.05 trillion, marking a historical high [21].

Group 1: Investment Recommendations - Monthly stock recommendations include: XJ Electric (000400.SZ) in power equipment, Zai Jian Pharmaceutical (688266.SH) in pharmaceuticals, Chip Source Microelectronics (688037.SH) in electronics, Hehe Information (688615.SH) in computers, Changying Precision (300115.SZ) in robotics & electronics, China Life (601628.SH) in non-banking, Shentong Express (002468.SZ) in transportation, Yahua Group (002497.SZ) in new metal materials, Global New Material International (06616.HK) in building materials, and Haidar (920699.BJ) on the Beijing Stock Exchange [3] Group 2: Power Equipment - XJ Electric (000400.SZ) is recommended due to: (1) Price reductions in secondary equipment, electric meters, and distribution network equipment may have bottomed out, indicating a potential rebound in the core business; (2) Severe challenges in renewable energy consumption with expectations for significant growth in ultra-high voltage direct current projects; (3) The offshore wind sector is expected to experience high prosperity during the 14th Five-Year Plan, which may open up opportunities in the direct current equipment industry [4] Group 3: Pharmaceuticals - Zai Jian Pharmaceutical (688266.SH) is recommended because: The existing core business has four products on the market, with future products expected to accelerate growth; the III phase pipeline DLL3 is expected to solidify the core business and has high overseas potential; the II phase pipeline PD1/TIGIT may provide significant growth flexibility; future dual-antibody/multi-antibody platform products are anticipated to open up growth space [6] Group 4: Electronics - Chip Source Microelectronics (688037.SH) is recommended due to: Rapid growth in demand driven by AI for advanced processes and storage, leading to accelerated expansion of wafer fabs; as a leading domestic supplier of large wet processing equipment, it continues to make breakthroughs in coating and developing equipment, with successful industrialization of chemical cleaning equipment; the market for domestic substitutes in coating and cleaning equipment is expected to grow significantly [8] Group 5: Computers - Hehe Information (688615.SH) is recommended because: In Q3 2025, revenue grew by 27.5% year-on-year, and profit increased by 34.9% year-on-year; AI products are continuously iterated, and the TextIn xParse platform provides general document parsing services for LLM downstream tasks, which may open up B-end market space; as a global leader in OCR, the company has 189 million monthly active users for its main C-end products, and the upcoming listing in Hong Kong is expected to further expand overseas markets and release growth potential [10] Group 6: Robotics & Electronics - Changying Precision (300115.SZ) is recommended due to: The robotics business supplies leading domestic and international robot manufacturers, with significant valuation elasticity; the consumer electronics business is deeply tied to Apple, and new projects like AI glasses are expected to bring revenue growth [12] Group 7: Non-Banking - China Life (601628.SH) is recommended because: The asset-liability matching is excellent, with a focus on annuities with an actual duration of about 10 years, leading to a narrowing duration gap; the early transformation to dividend insurance sales has resulted in a 51.72% share of new single premium in Q1 2025, outperforming most peers; future dividend payment capabilities have room for growth due to the reclassification of assets [13] Group 8: Transportation - Shentong Express (002468.SZ) is recommended due to: The "anti-involution" trend in the express delivery industry is expected to strengthen, with a potential recovery in prices by 2026; as one of the leading companies in the express delivery sector, it has significant profit elasticity and may have entered a period of sustained validation [16] Group 9: New Metal Materials - Yahua Group (002497.SZ) is recommended because: The dual main businesses of lithium hydroxide and civil explosives are running concurrently, with stable contributions from the explosives business and potential rebound in lithium business; the lithium segment is expanding production in partnership with Tesla, and the African K mine is expected to contribute to performance during the lithium price bottoming period [18] Group 10: Building Materials - Global New Material International (06616.HK) is recommended due to: The pearlescent pigment industry has strong consumer attributes, with a history of double-digit growth and annual price increases; upstream high-quality natural materials are depleting, leading to a concentration of core resources in leading companies; the acquisition of Germany's Merck SUSONITY has positioned the company as an industry leader and opened up high-end market opportunities [20] Group 11: Beijing Stock Exchange - Haidar (920699.BJ) is recommended because: It is a leading domestic supplier of server slide rails, breaking industry monopolies and leading self-replacement; the company has successfully entered the higher technical barrier server market and is a qualified supplier for major server manufacturers; the focus on high-value new products in AI server liquid cooling is expected to enhance profitability [22]

Fundraising Activities - In November, Source Code Capital announced the completion of a new growth fund with a total scale of $600 million, focusing on "AI+" and "Global+" investment directions [4] - Monolith completed fundraising for its dual-currency VC fund with a total scale of approximately $488 million (about 3.5 billion RMB), bringing its total asset management scale to over 10 billion RMB [6] - Hangzhou Runmiao Fund was established with an initial scale of 2 billion RMB, focusing on early-stage investments [8] - The XinKe Industry Investment Fund, initiated by Wuhan High-tech Group, has a total scale of 5 billion RMB, aimed at enhancing local industrial development [10] - CapitaLand Investment announced the completion of its CLARA II private fund with over $650 million raised, focusing on data centers and new economic infrastructure in the Asia-Pacific region [12] - Shenzhen Investment Control and Bank of Communications signed a cooperation agreement for a 2 billion RMB fund focusing on hard technology enterprises [14] - Chip Union Capital completed fundraising of 1.25 billion RMB for its main fund, targeting semiconductor and AI sectors [16] - Cainiao and China Life established a logistics investment fund with a total asset scale of over 1.7 billion RMB [18] - Lenovo announced the establishment of the Lenovo Shanghai Fund with an initial scale of 1 billion RMB, focusing on cutting-edge technology [20] - The Nanjing Jinyu Maowu Fund was established with a total scale of 1 billion RMB, focusing on AI and digital economy sectors [22] - The Henan Lihua Angel Fund was registered with a total scale of 177 million RMB, focusing on frontier technology investments [24] - Northern Light Venture Capital established a QFLP fund in Tianjin, with a registered capital of approximately 1 million RMB [26] - China Rare Earth established a private equity fund management company in Shenzhen with a registered capital of 30 million RMB [28] - The Hubei Zhongying Changjiang Fund was established with a target scale of 10 billion RMB, focusing on high-end equipment manufacturing and AI [30] - The Wuxi Baiwang AI Investment Fund was successfully registered, focusing on AI and data intelligence sectors [32] - Shanghai Jiao Tong University established a fund with a total scale of 100 million RMB, focusing on strategic emerging industries [34] - Yida Capital plans to establish a cross-border investment fund to support Guangzhou's economic development and attract international capital [36]

Investment Rating - The industry investment rating is optimistic (maintained) [1] Core Views - The insurance sector is preparing actively for the 2026 "opening red" period, with a focus on dividend insurance products, which are expected to outperform traditional insurance due to higher yield rates [6] - The brokerage sector continues to show high profitability, with wealth management, investment banking, and overseas business expected to drive earnings improvement [5][7] - The long-term interest rates are stabilizing at the bottom, which is expected to support the asset side logic and improve the liability cost for insurance companies [6] Summary by Sections Insurance Sector - The insurance companies are gearing up for the 2026 "opening red" with dividend insurance becoming the main product, offering a yield rate significantly higher than traditional insurance [6] - The market share of listed insurance companies is expected to increase due to the expansion of bank insurance channels and the release of "storage demand" [6] - The overall outlook for the liability side is optimistic, with potential improvements in the value rate of dividend insurance supported by rate adjustments and structural optimization [6] Brokerage Sector - The average daily trading volume of stock funds from January to November increased by 77.1% year-on-year, indicating strong market activity [7] - The China Securities Regulatory Commission has proposed to include commercial real estate in the public REITs pilot program, which is expected to enhance the market for REITs [7] - Major brokerage firms are expected to see significant ROE expansion under the current growth-oriented strategy, with low valuations presenting strategic allocation opportunities [7] Recommended Stocks - Recommended stocks include China Pacific Insurance, Ping An Insurance, China Life Insurance H, Huatai Securities, Guotai Junan, and others [8]

Core Insights - China Life Property & Casualty Insurance in Rizhao City has efficiently completed compensation for 35,200 acres of disaster-affected autumn grain, disbursing 7.8411 million yuan to 19,377 affected farmers, which is 52 days earlier than last year, providing strong financial support for autumn planting [1][3] - The company has established a comprehensive risk protection system for grain production, including innovative insurance solutions covering the entire lifecycle of crops, and has initiated commercial insurance products alongside policy-based insurance [3][4] Group 1 - The company has implemented an emergency response mechanism to enhance the efficiency of autumn grain compensation, including simplified claims processes and point-to-point services [1][2] - A "Party Member Pioneer Harvest Team" has been formed to assist farmers in harvesting autumn grain and preparing for winter wheat planting, while also establishing an information-sharing mechanism with local agricultural and meteorological departments [2][3] - The company has adopted a technology-driven approach for claims assessment, utilizing satellite remote sensing, drone aerial photography, and on-site inspections to improve efficiency and ensure fair compensation [2][3] Group 2 - The company has shifted its focus to risk protection for winter wheat, implementing measures such as improved insurance plans, pest monitoring, and expert guidance for field management to ensure increased summer grain production and food security [4] - The company has expedited the compensation process, starting payments on October 14, significantly ahead of the usual timeline, to support farmers before the autumn planting season [3] - The company aims to minimize disaster losses while ensuring fair and timely compensation, thereby reinforcing the food security defense line [3]

Core Viewpoint - The core viewpoint emphasizes the importance of inclusive finance in ensuring that the benefits of reform and development are equitably shared among all people, particularly through targeted financial services for vulnerable groups and small and micro enterprises [1] Group 1: Inclusive Financial Services - China Life Insurance Group has been actively enhancing the diversity, inclusiveness, and accessibility of financial services, focusing on key areas such as vulnerable groups, small and micro enterprises, and rural revitalization [1] - The "Women's Health Insurance" program, launched in collaboration with the All-China Women's Federation, allows women to obtain specific disease coverage with low premiums, ensuring affordability and timely payouts [2] - The company has developed various inclusive insurance products, including critical illness insurance and long-term care insurance, and has participated in over 200 critical illness insurance projects [2] Group 2: Support for Specific Groups - China Life's property insurance company has launched the "Military Care" project, providing risk protection for over 18.27 million veterans and their families, amounting to nearly 61 trillion yuan in risk coverage [3] - The "Worker Care" project has provided risk protection for nearly 1.3 million workers and their families, totaling over 3.8 trillion yuan in coverage [3] Group 3: Support for Small and Micro Enterprises - China Life's subsidiary, Guangfa Bank, has tailored personalized credit solutions for small and micro enterprises, exemplified by a 3-day approval process for a 3.28 million yuan loan to a high-tech company [4][5] - The bank's inclusive small and micro enterprise loans grew by approximately 5.9% by the end of the third quarter of 2025, with a weighted average interest rate decrease of 36 basis points compared to the beginning of the year [5] Group 4: Agricultural Insurance Initiatives - The introduction of commercial fruit tree comprehensive meteorological index insurance has provided farmers with confidence and protection against adverse weather conditions, covering over 40,000 acres with risk protection exceeding 35 million yuan [6] - China Life has provided risk protection for over 100 million acres of major crops, including rice, wheat, and corn, with total risk coverage exceeding 100 billion yuan [7]

Regulatory Dynamics - The China Insurance Asset Management Association has been renamed to include "Bank," marking a new phase in self-regulation for the banking and insurance asset management industry [8] - Beijing has upgraded vehicle insurance real-name authentication to a dual-factor verification system using "facial recognition + mobile verification" [9] - The Beijing Financial Regulatory Bureau reported that the insurance depth and density in the region remain the highest in the country [10] - Shenzhen's insurance industry reported a premium income growth rate of 12.2% in the first ten months, leading among first-tier cities [12] - Guangdong supports insurance funds to legally increase equity investment ratios and actively participate in merger and acquisition projects [13] - Shaanxi has established mechanisms to support insurance funds in setting up private equity venture capital funds [14] Company Dynamics - Taikang Life has increased its stake in Hong Kong-listed Fuhong Hanlin by purchasing 51,850 shares, raising its holding to 5.26% [16] - China Life has increased its stake in China National Railway Signal & Communication by 115,800 shares [17] - Dajia Life has invested over 20 billion in the Huage Nengrong (Shenzhen) Expressway [18] - China Life and Cainiao have jointly established a logistics investment fund with a scale exceeding 1.7 billion [19] - Caixin Jixiang and Guoshou Capital have laid out the first water and electricity private REIT in the country [20] - China Post has been approved to operate insurance agency business [25] - 法巴天星 has been approved to commence operations, with significant stakes held by both the French insurance group and Xiaomi [26] Industry Dynamics - The recent fire in Hong Kong's Tai Po district highlighted the low penetration rate of home insurance in mainland China, with many older residential areas lacking coverage [62] - Insurance capital has accelerated its equity investments, with 37 instances of stake acquisitions this year, the highest in nearly a decade [63] - The China Insurance Investment Fund became the largest winner in the IPO of "domestic Nvidia" Moer Thread, acquiring 437,520 shares [64][65] - The insurance industry is optimistic about the upcoming market trends, with expectations of a "spring surge" in stock market activity [66] - The China Actuarial Association suggests that insurance products should shift towards being less sensitive to interest rates [67] Personnel Changes - Zhao Yulong has been elected as the president of the China Insurance Industry Association [38] - He Xin has been approved to serve as the chairman of Dongfang Jiafu Life Insurance [40] - The board of directors of Zhong An Online has elected Yin Hai as chairman [41] - Key management adjustments have been made at China Reinsurance [42]

Core Viewpoint - The aging population in China presents significant challenges, with a need for improved pension systems and commercial insurance solutions to ensure a dignified retirement for citizens [1][3]. Group 1: Aging Population and Pension System - China is facing the dual challenges of "aging before becoming wealthy" and "aging without preparation," with 19 provinces already in a moderate aging society [1]. - By the end of 2024, the elderly population (60 years and older) is projected to reach 310 million, with those aged 65 and older at 220 million [1]. - The current pension system is unbalanced, with basic pension insurance coverage at 95%, but only 3% of employees participating in enterprise annuities and 7% in personal pensions [1][3]. Group 2: Commercial Insurance Solutions - Basic pension insurance meets only the basic survival needs, while a high-quality retirement requires commercial insurance solutions [3]. - Key pension products include personal pension products, commercial pension insurance, and annuity insurance, which provide stable cash flow and flexible payment options [3][4]. - The integration of insurance with health management and community care is a growing focus, offering comprehensive solutions for aging [4]. Group 3: International Experience and Investment Strategies - Spain's "insurance + health care integration" model serves as a reference, emphasizing personal pensions and tax incentives for retirement savings [5]. - In a low-interest environment, insurance companies in China are encouraged to invest long-term, with regulatory support for capital market participation [6]. - The investment side is crucial for the insurance industry, as effective asset allocation directly impacts profitability and product viability [6]. Group 4: Local Market Characteristics in Shenzhen - Shenzhen, with an average population age of 32.5, has diverse insurance needs across different demographics, including high-net-worth individuals and migrant workers [7]. - The "Shenzhen Huimin Bao" project has seen significant participation, with over 18.19 million insured, reflecting a growing demand for affordable healthcare solutions [8]. - The company has tailored insurance products for small and medium enterprises, focusing on industry-specific risks and green insurance initiatives [9].

Core Insights - The aging population in China is a pressing issue, with 19 provinces already in a moderately aging society, and projections indicate that by the end of 2024, there will be 310 million individuals aged 60 and above, and 220 million aged 65 and above [1][2] - The current pension system in China, which consists of three pillars (basic pension insurance, occupational pensions, and personal pensions), faces significant imbalances in development [1][2] - The basic pension insurance can only meet the basic needs of survival, and achieving a high-quality, dignified retirement life requires reliance on commercial insurance products [2][3] Pension System and Products - The average replacement rate of basic pensions for enterprise employees is approximately 45%, which is below the International Labour Organization's recommended standard of 55% [2] - Personal pension products are a key focus under national planning, but there is a need for increased consumer awareness and product purchasing rates [2] - Commercial pension insurance, particularly dedicated commercial pension products, offers flexible design and various payment methods, balancing stability and returns [2] - Annuity insurance provides a steady cash flow, making it suitable for clients with clear and stable future cash flow needs [2] Integrated Services - The development of "insurance + health + pension" integrated services is a significant direction, combining insurance products with health management and community care [3] International Experience - Spain's "insurance + health integration" model is highlighted as a reference, where personal pensions are encouraged through substantial tax incentives, and insurance companies collaborate with strong fund management firms for asset allocation [4] - The cost of care in Spain, where the monthly fee for mid-to-high-end nursing homes is about three times the average retirement salary, is comparable to some first-tier cities in China [4] Investment Strategies - The asset allocation of insurance funds is closely tied to macroeconomic conditions, with regulatory support for long-term investments in capital markets [6] - The investment side is crucial for the insurance industry's development, as effective asset allocation and operation directly influence fund yield and support product guarantees and profitability [6] Consumer Demand in Shenzhen - Shenzhen's population is characterized by a complex structure with significant differences in insurance needs among various groups, including high-net-worth individuals and the general public [7] - There is a growing demand for integrated medical services among the general population, while younger consumers are more price-sensitive and inclined towards internet-based insurance products [7] Financial Services and Innovation - The company has actively participated in the "Shenzhen Huimin Bao" project, which has seen over 18.19 million participants since its launch, demonstrating a commitment to inclusive financial services [8][9] - The company has tailored insurance solutions for small and medium-sized enterprises, addressing their specific risks and needs, and has provided substantial risk coverage for green industries and emerging sectors [10]