Soochow Securities·2025-06-08 13:20Investment Rating - The report maintains an "Overweight" rating for the non-bank financial sector [1] Core Views - The fundamentals of the non-bank financial sector are improving, with low valuations and expectations for policy catalysts [1] - The insurance sector is expected to benefit from economic recovery and rising interest rates, while the securities sector is poised for growth due to favorable market conditions and policy support [44] Summary by Sections 1. Recent Performance of Non-Bank Financial Sub-Sectors - All sub-sectors of non-bank financials outperformed the CSI 300 index in the recent four trading days, with the securities sector rising by 2.55%, multi-financial by 2.22%, and insurance by 1.03% [8][10] - Year-to-date, the insurance sector has performed the best, followed by multi-financials, while the securities sector has seen a decline [9] 2. Non-Bank Financial Sub-Sector Insights 2.1 Securities - Trading volume has significantly increased year-on-year, with June's average daily trading volume at 13,631 billion yuan, up 65.74% from last year [13] - The China Securities Regulatory Commission (CSRC) is committed to deepening reforms in the capital market, including enhancing the registration system for stock issuance and supporting mergers and acquisitions [17][18] 2.2 Insurance - Life insurance premiums have shown signs of recovery, with original premiums for personal insurance reaching 20,966 billion yuan in the first four months of 2025, a year-on-year increase of 1.8% [20] - The insurance sector's investment in equities has increased, with the total investment balance reaching 34.93 trillion yuan, up 16.7% year-on-year [23] 2.3 Multi-Financial - The trust industry is entering a stable transition period, with total trust assets growing to 29.56 trillion yuan, a year-on-year increase of 23.58% [31] - The futures market saw a significant increase in trading volume and value in April 2025, with a total transaction volume of 8.09 billion contracts and a transaction value of 70.18 trillion yuan, up 21.49% and 23.92% year-on-year, respectively [36] 3. Industry Ranking and Key Company Recommendations - The report ranks the non-bank financial sectors as follows: insurance > securities > other multi-financials, with key recommendations including New China Life Insurance, China Pacific Insurance, China Life Insurance, China Ping An, CITIC Securities, Tonghuashun, and Jiufang Zhitu Holdings [44]