Great Wall Securities·2025-06-17 08:01Investment Rating - The industry investment rating is "Outperform the Market" [3][21]. Core Viewpoints - The report highlights that geopolitical risks and market volatility are increasing, particularly due to the ongoing Israel-Iran conflict and U.S.-China trade negotiations, which may suppress market risk appetite [1][9]. - The non-bank financial sector, excluding insurance, has shown relative stagnation, while the banking sector has experienced significant volatility [1][9]. - The report suggests that financial weight sectors may benefit from an increase in market risk appetite and related policies, with a focus on the upcoming political bureau meeting in July [1][9]. Summary by Sections 1. Main Points - The report covers the performance of major indices, with the CSI 300 Index at 3864.18 points (-0.25%), the insurance index at 1229.00 points (2.06%), and the brokerage index at 6189.87 points (0.82%) [7]. - The insurance sector's investment scale is expected to grow steadily, with a notable increase in bond and stock allocations [2][10]. 2. Key Investment Portfolio 2.1 Insurance Sector - The insurance sector is currently undervalued, presenting opportunities for valuation recovery. Recommended stocks include China Ping An, China Pacific Insurance, and New China Life Insurance [11]. 2.2 Brokerage Sector - Focus on mid-sized securities firms benefiting from innovation and market conditions, such as East Money and Zheshang Securities. Large firms like Huatai Securities and China International Capital Corporation are also recommended due to their strong performance and low valuations [12].