PING AN OF CHINA(SH:601318) Soochow Securities·2026-01-22 14:24Investment Rating - The report maintains an "Increase" rating for the non-bank financial sector, indicating a positive outlook for the industry in the next 6 to 12 months [4]. Core Insights - The total holding of the non-bank financial sector by public funds increased to 2.42% at the end of 2025, up by 0.82 percentage points from Q3 2025. This is still underweight compared to the industry’s market capitalization in the CSI 300 by 8.46 percentage points [4]. - The insurance sector saw a significant increase in holdings, reaching 1.67%, which is an increase of 0.89 percentage points from Q3 2025. The dynamic valuation for the insurance sector was 0.78x PEV, up by 0.12x from the previous quarter [4]. - The brokerage and internet finance sectors experienced a decrease in holdings, with the overall holding at 0.69%, down by 0.06 percentage points from Q3 2025. Traditional brokerages saw a slight increase in holdings, with a valuation of 1.46x P/B at the end of 2025 [4]. - The non-bank financial sector is benefiting from an improving capital market environment, with a significant increase in trading activity, as evidenced by a 155% year-on-year increase in average daily trading volume to 34,444 billion [4]. Summary by Sections Public Fund Holdings Analysis - The top five stocks in the non-bank financial sector include China Ping An, China Pacific Insurance, CITIC Securities, Huatai Securities, and New China Life, with respective market values of 169.64 billion, 58.42 billion, 31.91 billion, 22.87 billion, and 22.78 billion [4]. - Insurance companies have all increased their holdings, with China Ping An showing the largest increase of 10,315 million shares. The holdings for major insurers at the end of 2025 were as follows: China Life (0.08%), Ping An (1.06%), China Pacific (0.36%), New China Life (0.14%), and China Re (0.02%) [4][9]. Brokerage and Internet Finance Sector - The traditional brokerage sector saw a slight increase in holdings, with major firms like CITIC, Guotai Junan, and others receiving increased institutional support, while firms like Huatai and China Galaxy faced reductions [4][10]. - The internet finance sector, represented by stocks like Dongfang Caifu and Tonghuashun, saw a decrease in holdings, indicating a shift in investor sentiment [4][10]. Market Conditions and Recommendations - The report highlights that the non-bank financial sector's attractiveness is increasing due to the ongoing recovery in the equity market and suggests that public funds are still underweight in this sector, presenting potential investment opportunities [4]. - Key recommendations include China Life, Ping An, New China Life, China Re, China Pacific, CITIC Securities, and Tonghuashun as favorable investment options [4].