Shenwan Hongyuan Securities·2025-08-03 13:05Investment Rating - The report maintains a positive outlook on the non-bank financial sector, indicating an "Overweight" rating for the insurance sector and a favorable view on the brokerage sector [1][2][59]. Core Insights - The insurance sector is expected to benefit from a decrease in new liability costs, an increase in the value of dividend insurance options, and a stabilization of long-term interest rates, leading to a positive performance outlook [2][3]. - The brokerage sector is facing intense competition, particularly in brokerage and investment banking services, but there is potential for improved profitability if fee competition stabilizes [2][3]. Summary by Sections Market Review - The Shanghai Composite Index closed at 4,054.93 with a decline of 1.8% during the week of July 28 to August 1, 2025. The non-bank index closed at 1,941.35, down 2.4% [5][11]. - The brokerage sector index fell by 3.2%, while the insurance sector index saw a slight decline of 0.1% [5][11]. Non-Bank Financial Insights - As of August 1, 2025, the 10-year government bond yield was 1.71%, showing a decrease of 0.87 basis points, while the credit spread for corporate bonds was 0.31% [11][14]. - The average daily trading volume in the stock market was 18,099.28 billion, reflecting a decrease of 2.11% week-on-week [14][33]. Key Company Announcements - China Pacific Insurance announced a capital increase of up to HKD 1.5 billion for its wholly-owned subsidiary in Hong Kong [20]. - New China Life Insurance plans to distribute a cash dividend of RMB 1.99 per share, totaling approximately RMB 6.21 billion [24]. Investment Analysis - The report recommends several stocks in the insurance sector, including China Life, China Pacific, and New China Life, based on their expected performance [2][3]. - For the brokerage sector, it suggests focusing on leading firms with strong competitive positions, such as GF Securities and CITIC Securities, as well as those with significant international business capabilities [2][3].