2025-03-20 09:00Investment Rating - The report indicates a positive outlook for the securities sector, with a current PB valuation of 1.47x, suggesting a high safety margin compared to historical averages [39]. Core Insights - The securities sector has shown a recovery, with a weekly increase of 2.86%, outperforming the broader market by 1.28% [5]. - The average stock price increase for listed brokerages was 3.2% during the week, with notable performers including China Galaxy and Xinda Securities, which saw gains exceeding 10% [11]. - The report emphasizes the ongoing support from national policies aimed at stabilizing growth and boosting the capital market, which is expected to enhance the sector's performance in the medium to long term [42]. Summary by Sections Market Review - The securities sector's performance has improved, with a year-to-date decline of only 2.02% as of March 14, 2025, compared to the gains of the CSI 300 and other indices [5]. - The sector has outperformed 25 other primary industries during the recent week [5]. Important Policies and Industry Dynamics - The China Securities Regulatory Commission (CSRC) has emphasized the importance of implementing policies that support market stability and growth, particularly in light of recent national meetings [14][15]. - A notification from the Ministry of Natural Resources and the Ministry of Finance outlines the use of local government special bonds to support land reserves, which may indirectly benefit the securities market [16][17]. Key Market Data - The A-share market remains active, with an average daily trading volume of 1.75 trillion yuan, reflecting an 82.44% year-on-year increase [25]. - A total of 35.1 billion yuan was raised through equity financing in the A-share market during the week, with significant contributions from IPOs [31]. Valuation and Investment Recommendations - The current PB valuation of the securities sector is 1.47x, which is below the historical average of 1.85x, indicating potential for growth [39]. - Investment recommendations focus on leading brokerages with strong fundamentals, those likely to benefit from mergers and acquisitions, and firms excelling in wealth management [42].