Shenwan Hongyuan Securities·2025-07-27 10:44Investment Rating - The report maintains a positive outlook on the non-bank financial sector, indicating an "Overweight" investment rating for the industry [1][2]. Core Insights - The non-bank financial sector has shown strong performance, with the Shenwan Non-Bank Index rising by 3.52% during the week, outperforming the CSI 300 Index, which increased by 1.69% [5]. - Public funds have significantly increased their allocation to the non-bank sector, with the active equity fund heavy positions in the sector rising by 99 basis points quarter-on-quarter to 2.16% in Q2 2025 [2]. - The report highlights a positive trend in brokerage firms' earnings, with 27 traditional brokerages reporting year-on-year profit increases for Q2 2025, indicating a robust recovery in the sector [2]. - The insurance sector is also expected to benefit from a decrease in the cost of new liabilities and an increase in the value of participating insurance options, leading to a favorable outlook for the insurance industry [2]. Summary by Sections Market Review - The CSI 300 Index closed at 4,127.16, with a weekly change of +1.69%, while the non-bank index closed at 1,989.03, reflecting a weekly increase of +3.52% [5]. - The brokerage sector saw a significant increase of 4.82%, while the insurance sector rose by 1.83% [5]. Non-Bank Industry News and Key Announcements - The report notes that the China Insurance Association has indicated that the current research value for the predetermined interest rate of ordinary life insurance products is 1.99%, which is expected to trigger a reduction in the maximum predetermined interest rate for new products [18]. - The report mentions that the market sentiment has improved significantly, with daily trading volumes exceeding 1.7 trillion yuan, indicating a high level of trading activity [2][15]. - The report also highlights that the brokerage firm Shouhua Securities plans to issue H-shares and list on the Hong Kong Stock Exchange, marking a significant move in the competitive landscape of the brokerage industry [2][23].