Changjiang Securities·2025-11-23 23:30Investment Rating - The report maintains a positive outlook on the investment banking and brokerage industry [7] Core Insights - The report highlights a recent merger announcement by China International Capital Corporation (CICC) to absorb Dongxing Securities and Xinda Securities through a share swap, indicating a trend towards consolidation among leading brokerages [2][4] - In the insurance sector, the third-quarter reports confirm a shift towards equity investments and improved cost structures, suggesting a higher certainty of ROE improvement and potential for accelerated valuation recovery [2][4] - The overall cost-effectiveness of investment in the sector is gradually increasing, with ongoing revaluation of the sector [4] Summary by Sections Brokerage Sector - CICC's merger with Dongxing and Xinda Securities reflects a long-term trend of concentration among top firms [4] - The brokerage sector is expected to see a gradual recovery in profitability as commission rates stabilize [41] Insurance Sector - The insurance industry reported significant growth in value, premiums, and profits, with a cumulative premium income of CNY 52,146 billion in September 2025, marking an 8.76% year-on-year increase [23][24] - The report emphasizes the stability of dividends and profit growth in companies like Jiangsu Jinzu and China Ping An, which are recommended for investment [4] Market Performance - The non-bank financial index decreased by 4.4% this week, with a year-to-date increase of 2.8%, indicating a mixed performance relative to the broader market [5][19] - The average daily trading volume in the market has decreased to CNY 18,650.36 billion, down 8.75% from the previous period [41] Financing Activities - In October 2025, equity financing increased to CNY 501.42 billion, a 20.4% rise, while bond financing decreased to CNY 6.56 trillion, a 19.2% drop [53] - The report notes a decline in the issuance of collective asset management products, with a new issuance of 4.183 billion units in October, down 37.3% [56]