Soochow Securities·2025-04-06 10:25Investment Rating - The report maintains an "Overweight" rating for the non-bank financial sector [1]. Core Insights - The non-bank financial sector has shown a mixed performance recently, with the insurance industry performing better than others, while the securities sector lagged behind the CSI 300 index [9][10]. - Regulatory changes are being implemented to support the establishment of private securities investment funds and to standardize major equity investments by insurance companies [1][24]. Summary by Sections Non-Bank Financial Subsector Performance - In the recent trading days, the non-bank financial sector saw a decline of 1.31%, with the securities industry down 1.81%, while the CSI 300 index fell by 1.37% [9][10]. - Year-to-date, the insurance sector has decreased by 3.45%, the multi-financial sector by 3.78%, and the securities sector by 7.25% [10]. Non-Bank Financial Subsector Views Securities - Trading volume has seen a slight year-on-year increase, with an average daily trading amount of CNY 1,101.5 billion in April 2025, up 9.64% from the previous year [15]. - The CSRC is revising the regulations for securities investment fund custody, focusing on improving entry thresholds and enhancing risk isolation [19][22]. Insurance - Listed insurance companies reported significant profit growth in 2024, with net profits for major firms like Ping An and China Life increasing by 48% and 132% respectively [24][26]. - The regulatory body has issued guidelines to standardize major equity investments by insurance funds, aiming to optimize investment in strategic and emerging industries [28]. Multi-Financial - The trust industry is entering a stable transition phase, with total trust assets reaching CNY 27 trillion, a year-on-year increase of 24.5% [30]. - The futures market has seen a significant increase in trading volume, with February 2025 figures showing a 69.67% year-on-year growth in transaction volume [36]. Industry Ranking and Key Company Recommendations - The report ranks the insurance sector highest, followed by securities and other multi-financial services, recommending companies such as New China Life, China Life, CITIC Securities, and Huatai Securities [46]. - The non-bank financial sector is currently valued at a low level, providing a safety margin and balanced risk-reward profile [46].