Shanxi Securities·2025-11-26 06:56Investment Rating - The report maintains an investment rating of "Leading the Market - A" for the non-bank financial industry, indicating an expected performance that exceeds the benchmark index by more than 10% [3][29]. Core Insights - The report highlights significant progress in mergers and acquisitions within the brokerage sector, with a focus on enhancing the functional capabilities of securities firms. The China Securities Association reported that in the first three quarters of 2025, securities companies collectively underwrote technology innovation bonds amounting to 705.18 billion yuan, reflecting a year-on-year growth of 57.77% [3][7][23]. - The report emphasizes the potential for further acceleration in mergers and acquisitions in the securities industry, driven by policy support for building a strong financial nation. This consolidation is expected to enhance overall competitiveness and contribute to the goal of establishing first-class investment banks [4][7]. Summary by Sections 1. Investment Recommendations - Securities companies are focusing on five major areas to enhance their functional roles, with a notable increase in underwriting technology innovation bonds [7]. - The report suggests that the ongoing mergers and acquisitions will likely lead to improved performance for certain brokerages, with opportunities for both external and internal growth strategies [4][7]. 2. Market Review - The report notes a decline in major indices, with the Shanghai Composite Index down by 3.90% and the ChiNext Index down by 6.15% during the specified period. The average daily trading volume in A-shares was 1.87 trillion yuan, a decrease of 8.75% [8][11]. 3. Key Industry Data Tracking - As of November 21, 2025, the margin trading balance was 2.46 trillion yuan, showing a slight decrease of 1.25%. The report also highlights a decline in new fund issuance and equity underwriting in October 2025 [14][22]. - The report provides insights into the bond market, noting a 1.79% decline in the total price index of bonds since the beginning of the year, with the 10-year government bond yield rising by 20.89 basis points [14][20]. 4. Regulatory Policies and Industry Dynamics - The report discusses the significant growth in the underwriting of technology innovation bonds by securities firms, with 75 firms participating and a total underwriting amount of 705.18 billion yuan [23]. - It also mentions the insurance asset management industry, which has seen a 10.60% year-on-year increase in managed funds, totaling 33.30 trillion yuan as of the end of 2024 [23]. 5. Key Announcements from Listed Companies - The report notes that China International Capital Corporation (CICC) is planning a major asset restructuring through a share swap with Dongxing Securities and Xinda Securities, which has led to a temporary suspension of trading [24].