非银金融：互换便利专题报告-提升机构占比，提振市场信心

Investment Rating - The industry investment rating is "Outperform the Market" [4] Core Insights - The report emphasizes the importance of enhancing the proportion of institutional investors to boost market confidence, particularly in the context of recent policy changes aimed at providing liquidity support to enhance the funding capabilities of institutional investors [18][6] - The introduction of the Securities, Fund, and Insurance Swap Facility (SFISF) is expected to significantly improve market liquidity and investor behavior, particularly by allowing institutions to leverage their positions more effectively [6][42] Summary by Sections 1. Background of the Tool - The report highlights the need to restore market expectations and stability in China's capital markets, which have been affected by high retail investor participation and recent market volatility [17][18] - Institutional investors currently hold approximately 18.83% of the market, which is significantly lower than the 60% in the U.S. market, indicating a need for increased institutional participation [17] 2. Analysis of Swap Facility - The SFISF was jointly issued by the central bank and the securities regulatory authority to enhance liquidity support for securities, fund, and insurance companies [20] - Key rules include not consuming net capital of non-bank institutions, lowering risk control indicators, and allowing certain investments to be counted in other comprehensive income (OCI) accounts [20][21] 3. Comparison with Other Markets - The report compares SFISF with similar tools in mature markets, such as the Term Securities Lending Facility (TSLF) used by the Federal Reserve, noting that SFISF is designed specifically to support the stock market [40][41] - The operational scale of SFISF is set at an initial 500 billion yuan, with potential for expansion based on market conditions [22] 4. Impact of the Swap Facility - The SFISF is expected to enhance liquidity by allowing institutions to use high-quality assets as collateral to obtain central bank notes, which can then be reinvested in the stock market [42] - The tool is anticipated to significantly increase the leverage capacity of institutions, thereby improving market liquidity and stability [45][46] - The report notes that the initial operation of the SFISF has already seen over 90% of the applied amount utilized, indicating strong market engagement [55] 5. Effects on Brokerages - The SFISF is expected to stimulate brokerage activities by relaxing risk control indicators, thereby increasing the participation of institutions in the A-share market [49][53] - The report lists 20 companies, including 17 brokerages, that have been approved to participate in the SFISF, indicating a broad acceptance of the tool within the industry [49][50] 6. Capital Market Implications - The introduction of the SFISF is likely to accelerate the growth of ETF products, particularly equity ETFs, which have seen significant growth in recent years [57][58] - The report notes that the ETF market has experienced a compound annual growth rate of 38.02% over the past four years, with institutional participation expected to further drive this growth [57]