Investment Rating - The report maintains a "Positive" investment rating for the non-bank financial sector [7] Core Insights - The non-bank sector has shown strong performance this week, with brokers experiencing increased trading activity while maintaining historical highs. The insurance sector is expected to see improved long-term ROE and valuation recovery, indicating a rising cost-effectiveness for overall allocation [2][4] - Recommendations include stable profit growth and dividend rates for Jiangsu Jinzu, high dividend yield for China Ping An, and companies with strong business models and market positions like China Pacific Insurance. Additional recommendations include New China Life, China Life, Hong Kong Stock Exchange, CITIC Securities, Dongfang Caifu, Tonghuashun, and Jiufang Zhitu Holdings based on performance elasticity and valuation levels [4] Market Performance - The non-bank financial index increased by 2.6% this week, with a year-to-date performance of 2.6%, ranking 21 out of 31 sectors. The average daily trading volume in the two markets reached 28,519.51 billion yuan, up 34.00% week-on-week, with a daily turnover rate of 2.77%, up 61.14 basis points [5][15] - The market has seen a recovery in trading activity, with the Shanghai Composite Index rising by 5.11% and the bond index declining by 0.23%. Long-term interest rates have increased, with the 10-year government bond yield rising by 3.09 basis points to 1.8782% [5][39] Insurance Sector Overview - In November 2025, the cumulative premium income reached 57,629 billion yuan, a year-on-year increase of 7.56%. Life insurance premiums increased by 9.06%, while property insurance premiums rose by 3.88% [19][20] - The total assets of insurance companies reached 40.65 trillion yuan, with life insurance companies holding 35.75 trillion yuan, reflecting a stable asset allocation with a slight decrease in deposit proportions and an increase in bond and equity fund allocations [25][26] Brokerage and Investment Business - The brokerage business has seen a recovery in trading volumes, with a two-market average daily trading volume of 28,519.51 billion yuan, indicating a gradual recovery in profitability as commission rates stabilize [40] - The investment business has also rebounded, with the Shanghai Composite Index increasing by 2.79% and the ChiNext Index by 3.89%. The proportion of equity investments in brokerage assets is approximately 10%-30%, while bond investments account for 70%-90% [44] Financing Activities - In December 2025, equity financing reached 663.12 billion yuan, a 30.9% increase, while bond financing totaled 7.34 trillion yuan, up 4.0%. This indicates a positive trend in financing activities, with expectations for increased stock underwriting in the future [51] - The asset management sector saw a rebound in new issuance, with 61.14 billion units issued in December, a 39.0% increase compared to previous months [53]