Shenwan Hongyuan Securities·2025-10-26 14:09Investment Rating - The report maintains a positive outlook on the non-banking financial sector, emphasizing the potential for recovery and growth in the brokerage and insurance segments [2][5]. Core Insights - The brokerage sector has shown strong performance, with notable profit increases for major firms such as CITIC Securities and Dongfang Wealth, indicating a robust market environment [2]. - The insurance sector is expected to benefit from regulatory improvements and a focus on risk management, with a long-term growth outlook driven by public service needs and foreign investment [2][5]. - The report highlights the importance of the "14th Five-Year Plan" and its implications for the financial industry, particularly in terms of innovation and risk management [2][5]. Market Review - The Shanghai Composite Index closed at 4,660.68 with a weekly increase of 3.24%, while the non-banking index rose by 2.02% [5]. - The brokerage index increased by 2.05%, and the insurance index saw a rise of 1.85% during the same period [5]. - The average daily trading volume for the stock market was reported at 20,966.76 billion, reflecting a significant market activity [13][47]. Non-Banking Sector Data - As of October 24, 2025, the 10-year government bond yield was 1.85%, showing a slight decrease, while the corporate bond credit spreads also narrowed [11]. - The report notes that the average daily trading volume for the year has increased by 57.70% compared to the previous year, indicating a strong recovery in market activity [13]. Investment Recommendations - For the brokerage sector, the report recommends focusing on leading firms with strong competitive positions, such as GF Securities and CITIC Securities, as well as those with high earnings elasticity like Dongfang Securities [2]. - In the insurance sector, companies like China Life and Ping An are highlighted as strong investment opportunities due to their expected performance improvements and market positioning [2][5].