Minsheng Securities·2025-06-08 09:07Investment Rating - The report maintains a "Recommended" rating for the industry, indicating a positive outlook for investment opportunities [5]. Core Insights - Major insurance companies are increasingly establishing private equity funds to explore new forms of equity investment and secondary market stock investment, with China Pacific Insurance recently launching two funds totaling 50 billion yuan [1][2]. - The establishment of these funds is supported by recent policies aimed at encouraging long-term capital market participation, which is expected to enhance the investment structure of insurance companies and solidify their dividend bases [2]. - The number of new A-share accounts opened in May 2025 showed a year-on-year increase of 22.86%, indicating a growing interest in the market, driven by favorable monetary policies [3]. Summary by Sections Market Review - Major indices saw increases, with the Shanghai Composite Index rising by 1.13% and the Shenzhen Component Index by 1.42% during the week [9]. - The non-bank financial sector, particularly the multi-financial index, experienced significant growth, with a rise of 2.67% [9]. Securities Sector - The total trading volume in the Shanghai and Shenzhen markets reached 5.88 trillion yuan, with an average daily trading amount of 1.18 trillion yuan, reflecting an 8.50% week-on-week increase [17]. - The IPO underwriting scale for the year reached 31.42 billion yuan, while refinancing underwriting amounted to 246.47 billion yuan [17]. Insurance Sector - The report highlights the establishment of private equity funds by leading insurance companies, which is expected to enhance their investment capabilities and support capital market development [1][2]. - The focus on high-dividend and stable income stocks is anticipated to improve the long-term investment portfolio of insurance companies [2]. Liquidity Tracking - The central bank conducted a reverse repurchase operation of 930.9 billion yuan, with a net withdrawal of 671.7 billion yuan, indicating a tightening liquidity environment [28]. - Interest rates for various financial instruments, including government bonds, have generally declined, with the 1-year government bond yield falling to 1.42% [28]. Investment Recommendations - The report suggests focusing on leading insurance companies such as China Pacific Insurance, New China Life, Ping An, China Life, and China Property & Casualty [37]. - In the securities sector, it recommends attention to top brokers like China Galaxy, CITIC Securities, and Huatai Securities, as well as financial institutions like ZhongAn Online and Hong Kong Exchanges [38].