Shenwan Hongyuan Securities·2025-05-07 13:44Investment Rating - The report maintains an "Overweight" rating for the non-bank financial sector, indicating a positive outlook for the industry compared to the overall market performance [3][6]. Core Insights - The report highlights the implementation of a comprehensive financial policy package aimed at stabilizing the market and enhancing expectations, which includes a series of monetary policy measures such as a 0.5% reduction in the reserve requirement ratio and a 0.1% cut in policy interest rates [3][4]. - It emphasizes the expansion of long-term equity investment trials for insurance funds, with an additional 600 billion yuan approved for investment, which is expected to inject more capital into the market [5]. - The report notes the optimization of solvency regulations for insurance companies, allowing for a higher equity allocation limit, which is projected to increase the total equity allocation limit to 9.29 trillion yuan, up by 505.5 billion yuan from previous regulations [5]. - It discusses the push for long-term investment strategies and the alignment of assessment cycles with the investment horizons of insurance funds, which is expected to facilitate greater market participation by long-term capital [5][6]. Summary by Sections Non-Bank Financial Sector - The report outlines three key measures by the financial regulatory authority to stabilize and invigorate the capital market, including expanding the scope for insurance capital to invest in equities and optimizing solvency regulations [4][5]. - It highlights the need for public funds to enhance their service capabilities for long-term capital, with a focus on improving the efficiency of equity fund registrations and the introduction of performance-based fee structures [6]. Market Analysis - The report indicates that the current valuation levels of A-shares are low compared to global markets, suggesting a potential for asset allocation value in China, which could support market recovery [6]. - It recommends focusing on the non-bank sector's beta attributes, particularly in brokerage firms, which are expected to benefit directly from the supportive policies and market stabilization efforts [6]. Investment Recommendations - The report suggests specific investment opportunities within the brokerage sector, recommending firms such as China Galaxy, CICC, and GF Securities based on their performance elasticity and market positioning [6]. - It also advises monitoring insurance companies that are likely to benefit from the strategic focus on stabilizing the capital market, with particular attention to firms like New China Life and China Pacific Insurance [6].