Investment Rating - The report maintains an "Overweight" rating for the non-bank financial sector [1]. Core Insights - The non-bank financial sector has shown varied performance, with the insurance industry outperforming the CSI 300 index recently, indicating a potential recovery and investment opportunity [8][9]. - Significant reforms in public funds are expected to enhance the industry's quality and performance, particularly through a new fee structure linked to fund performance [13][17]. - The insurance sector is anticipated to increase equity investments, supported by regulatory changes aimed at stabilizing and invigorating the capital market [23][25]. - The multi-financial sector is transitioning into a stable growth phase, with trust and futures industries adapting to new market conditions [30][31]. Summary by Sections 1. Recent Performance of Non-Bank Financial Sub-Sectors - In the recent trading period (May 6-9, 2025), the insurance sector rose by 2.89%, while the overall non-bank financial sector increased by 1.81%, compared to a 2.00% rise in the CSI 300 index [8][9]. - Year-to-date, the insurance sector has decreased by 3.52%, while the overall non-bank financial sector has fallen by 8.46% [9]. 2. Non-Bank Financial Sub-Sector Insights 2.1 Securities - Trading volume has significantly increased, with May's average daily trading volume reaching 15,242 billion CNY, a 62.27% year-on-year increase [13][14]. - The China Securities Regulatory Commission (CSRC) has introduced a new action plan to promote high-quality development in public funds, focusing on performance-based fee structures [17][18]. 2.2 Insurance - Regulatory bodies are expanding the scope for long-term insurance investments, aiming to inject more capital into the market [23][25]. - The insurance sector's valuation is currently at 0.52-0.84 times the 2025E P/EV, indicating a historical low and potential for growth [25]. 2.3 Multi-Financial - The trust industry is experiencing a transition phase, with a notable decline in profits, while the futures market is seeing increased trading volumes and revenues [30][31]. - In March 2025, the futures market recorded a trading volume of 734 million contracts, with a transaction value of 61.59 trillion CNY, reflecting a year-on-year growth of 24% [31][37]. 3. Industry Ranking and Key Company Recommendations - The report ranks the insurance sector highest, followed by securities and other multi-financial services, recommending companies such as New China Life Insurance, China Pacific Insurance, and CITIC Securities for investment [41][43].

即使如此，治沉疴需用猛药。《方案》突出强化与投资者的利益绑定，改革基金运营模式，督促行 业回归为"为投资者创造价值"的本源，这是重大的利益格局调整，也是一次"刀刃向内"的改革。 此前，公募基金行业过度依赖"造星效应"，通过包装基金经理人设、制造明星产品概念等吸引投资 者。基金公司因为规模做大收取更多管理费，其高管和基金经理人也因之获益，但是很多基民在营 销攻势下盲目跟风，让真金白银沦为规模扩张的牺牲品。投资者的投资回报长期跑输预期，投资体 验欠佳，则成为行业痼疾。 对于公募基金来说，这是一场脱胎换骨的变革。改革成效如 何，要看公募基金是否真正将投资人最佳利益放在第一位，是 否切实提升了投资者的投资回报。 作者：社论 封图：图虫创意 5月7日，一场公募行业大变革正式拉开序幕。中国证监会印发《推动公募基金高质量发展行动方 案》（下称《方案》），最值得关注的当然是，这场变革对超7亿基民、涉及上亿家庭的投资理财 市场意味着什么。 公募基金管理规模超过 30 万亿元，是中国资产管理市场中规模最大、覆盖人群最广、产品体系最 丰富的核心板块，在服务居民财富管理、支持实体经济发展等方面发挥着日益重要的作用。即使如 此，基金行 ...

Investment Rating - The report maintains an "Overweight" rating for the non-bank financial sector [1] Core Insights - The non-bank financial sector is experiencing a recovery, with significant policy support and market improvements expected to drive growth in insurance and securities [1][3] - The insurance sector is anticipated to increase equity investments, supported by regulatory changes and economic recovery [23][25] - The securities sector is benefiting from a surge in trading volumes and the introduction of a major reform plan for public funds [13][20] Summary by Sections 1. Recent Performance of Non-Bank Financial Sub-Sectors - In the recent four trading days (May 6-9, 2025), only the insurance sector outperformed the CSI 300 index, with an increase of 2.89% [8] - Year-to-date, the insurance sector has declined by 3.52%, while the overall non-bank financial sector has decreased by 8.46% [9] 2. Non-Bank Financial Sub-Sector Insights 2.1 Securities - Trading volume has significantly increased, with the average daily trading amount for May reaching 15,242 billion yuan, a 62.27% year-on-year increase [13] - The China Securities Regulatory Commission (CSRC) has introduced a reform plan aimed at enhancing the quality of public funds, including a performance-based fee structure [17][18] 2.2 Insurance - Regulatory bodies are expanding the scope for long-term insurance investments, aiming to inject more capital into the market [23] - The insurance sector's premium income showed a slight year-on-year increase of 0.2% in Q1 2025, indicating a recovery trend [25] 2.3 Multi-Financial - The trust industry is entering a stable transition phase, with total assets reaching 27 trillion yuan, a 24.5% year-on-year increase [26] - The futures market saw a trading volume of 734 million contracts in March 2025, with a 17.28% year-on-year growth [31] 3. Industry Ranking and Key Company Recommendations - The report ranks the sectors as follows: Insurance > Securities > Other Multi-Financial [41] - Key recommended companies include New China Life Insurance, China Pacific Insurance, China Life Insurance, China Ping An, CITIC Securities, and Tonghuashun [41][21]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The banking sector is expected to benefit from the influx of long-term capital and relative underweighting in indices, alongside stable dividends, indicating continued upward momentum for bank stocks [5][6] - The report anticipates stable performance in the banking sector for 2025, with steady growth in revenue and net profit, driven by improved credit structure and reduced risk in retail lending [6] Summary by Sections Industry Trends - The banking sector's active equity holdings as of Q1 2025 accounted for 3.75%, which is approximately 10 percentage points lower than the CSI 300 index [4][9] - The report highlights a decrease of 0.23 percentage points in bank stock holdings compared to Q4 2024 [4] Investment Opportunities - The report suggests that the banking sector is likely to see a valuation recovery due to supportive policies and stable dividend yields, with a projected dividend yield of over 4% [5][6] - Recommended stocks include Citic Bank, Agricultural Bank of China, and China Merchants Bank, with cyclical stocks like Suzhou Bank also highlighted [6] Market Dynamics - The report notes that the banking sector's return on equity (ROE) to price-to-book (PB) ratio dynamics are shifting from being driven by ROE to being driven by capital inflows [5] - The anticipated necessary return rate of 4% suggests that the theoretical PB valuation for the four major banks could exceed 1, indicating significant upside potential [5]

Monetary Policy and Economic Measures - The central bank announced a comprehensive reduction in the reserve requirement ratio by 0.5 percentage points, expected to release approximately 1 trillion yuan in long-term liquidity [2] - The policy interest rate was lowered by 0.1 percentage points, with the 7-day reverse repurchase rate decreasing from 1.5% to 1.4%, likely leading to a similar drop in the Loan Prime Rate (LPR) [2] - The measures aim to stabilize market expectations and support the development of the real economy, with the Shanghai Composite Index rising by 0.8% to 3342.67 points on the announcement day [2][3] Public Fund Industry Reform - The China Securities Regulatory Commission (CSRC) introduced an action plan to promote high-quality development in public funds, shifting focus from "scale" to "returns" [4] - Key changes include linking management fees to fund performance, with lower fees for underperforming funds and potential increases for those exceeding benchmarks [4][5] - As of the end of April, public funds managed 32.5 trillion yuan, with over 50% of pension assets under management [4][5] Trade and Export Performance - In April, China's exports grew by 9.3% year-on-year, while imports turned positive with a 0.8% increase [9] - The total value of goods trade for the first four months reached 14.14 trillion yuan, a 2.4% increase compared to the previous year [9] - Exports to the U.S. saw a significant decline of 21.0%, while exports to ASEAN countries increased by 20.8% [9] Automotive Industry Standards - The Ministry of Industry and Information Technology is seeking public input on new safety standards for automotive door handles, focusing on emergency access and safety in accidents [10] - The proposed standards aim to enhance the safety and visibility of hidden door handles, addressing concerns raised by recent traffic incidents [10][11] Private Sector Investment - The National Development and Reform Commission plans to launch approximately 3 trillion yuan in quality projects this year, encouraging private sector participation in major infrastructure projects [13] - The initiative aims to leverage the flexibility and innovation of private enterprises to enhance project execution and create jobs [13] Stock Market and Corporate Actions - Geely Automobile announced plans to acquire all shares of Zeekr Intelligent Technology, leading to its delisting from the NYSE and a focus on consolidating its automotive business [18] - This move reflects Geely's strategy to enhance its competitiveness in the smart electric vehicle sector amid increasing market pressures [18]

比如说，浮动管理费模式要求基金公司具备更强的投研能力和风险管理能力，以适应新的收费机制。因为资源有限并且面对激烈的市场竞争，一些中小基金 公司很可能面临更大压力。 再比如，长期以来，渠道机构在公募基金代销中占据主导地位，只重规模、不顾盈亏的销售模式根深蒂固。《方案》对渠道机构的考核指标进行了调整，纳 入投资者盈亏、持有期限等指标，但要渠道机构彻底转变经营理念，需要时间，更需要决心。 即使如此，治沉疴需用猛药。《方案》突出强化与投资者的利益绑定，改革基金运营模式，督促行业回归为"为投资者创造价值"的本源，这是重大的利益格 局调整，也是一次"刀刃向内"的改革。 此前，公募基金行业过度依赖"造星效应"，通过包装基金经理人设、制造明星产品概念等吸引投资者。基金公司因为规模做大收取更多管理费，其高管和基 金经理人也因之获益，但是很多基民在营销攻势下盲目跟风，让真金白银沦为规模扩张的牺牲品。投资者的投资回报长期跑输预期，投资体验欠佳，则成为 行业痼疾。 针对这种现象，《方案》明确基金公司收入与产品收益挂钩。例如，建立与基金业绩挂钩的浮动管理费机制，若基金业绩不佳，管理费率将下调；如果业绩 出色，管理费率才可能上升。这将引 ...

Core Viewpoint - The newly released "Action Plan for Promoting High-Quality Development of Public Funds" aims to address the issue of "funds making money, but investors not benefiting" by implementing 25 measures that link fund performance to management fees and compensation for fund managers, marking a shift from a focus on scale to one on returns in the public fund industry [2][3][4] Group 1: Fee Structure Reform - The plan introduces a floating management fee model based on performance benchmarks, where funds that underperform will have lower fees, while those that exceed benchmarks will have higher fees [3][4] - The China Securities Regulatory Commission (CSRC) emphasizes that fund companies must reduce management fees for poorly performing funds, addressing the criticism of the previous fixed fee model [3][4] - Major fund companies, including E Fund and GF Fund, are already adapting their fee structures to align with the new regulations, focusing on performance-based fees [4][5] Group 2: Performance-Based Compensation - The plan establishes that fund managers' compensation will be linked to their funds' performance relative to benchmarks, with significant penalties for underperformance and rewards for exceeding benchmarks [6][8] - Fund companies are required to implement long-term performance assessments, with at least 80% of the evaluation based on three-year performance metrics [6][8] - Companies like E Fund and GF Fund are already revising their performance evaluation systems to align with the new guidelines [6][8] Group 3: Shift to Buy-Side Advisory - The plan mandates a transition from a sales-driven approach to a client-focused advisory model, emphasizing the importance of investor returns over company profits [9][10] - Fund companies are encouraged to develop investment advisory services to better align with investor interests and improve overall client experience [9][10] - The Guangzhou Investment Advisory Academy is working on standardizing advisory services to enhance the quality and consistency of investment advice provided to clients [10]

Core Viewpoint - The newly released public fund reform plan emphasizes performance assessment for fund managers, linking their compensation to fund performance, which aims to improve long-term returns for investors [2][3][4]. Summary by Sections Fund Performance Issues - Over the past three years, more than 30% of mixed funds have underperformed their benchmarks by over 10%, and approximately 6.6% of equity funds have also lagged by the same margin [2][8]. - Notable underperformers include 52 mixed funds and 8 equity funds that have underperformed their benchmarks by over 50%, including products managed by renowned fund managers [2][8]. Reform Measures - The reform plan includes 25 measures, with a significant focus on linking fund manager compensation to performance metrics, where performance indicators must account for at least 80% of the assessment [3][4]. - Fund managers whose products underperform their benchmarks by over 10% for three years will see a significant reduction in their performance-based compensation, while those who exceed benchmarks may receive increased compensation [3][4]. Long-term Focus - The reform aims to shift the focus from scale to performance, encouraging fund managers and companies to prioritize long-term returns for investors [4][5]. - The introduction of metrics such as net asset growth rate and fund profit rate is expected to mitigate the industry's short-sighted focus on scale [5]. Performance Data - As of May 8, among 4,693 equity funds, 308 funds (approximately 6.6%) have underperformed their benchmarks by over 10%, while 418 funds (about 8.9%) have outperformed by the same margin [6]. - The worst-performing fund, Jia Shi Intelligent Automotive, has a return of -35.39%, significantly underperforming its benchmark by 81.88% over three years [7][8]. Mixed Fund Performance - In the mixed fund category, 2,660 out of 8,634 funds (30.8%) have underperformed their benchmarks by over 10%, with only 686 funds (7.9%) outperforming [8][9]. - The worst-performing mixed fund, Jin Ying Multi-Strategy, has a return of -60.58%, underperforming its benchmark by 69.26% [9][10].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued a comprehensive action plan aimed at promoting the high-quality development of public funds, which includes 25 reform measures focusing on optimizing fund operation models, enhancing performance evaluation systems, and strengthening regulatory enforcement to ensure investor interests are prioritized [1][2]. Group 1: Reform Measures - The action plan emphasizes the importance of binding investor returns to fund performance, introducing measures such as strengthening the constraints of performance benchmarks and establishing a floating management fee mechanism linked to fund performance [2][3]. - A significant highlight is the introduction of a regulatory guideline for performance benchmarks, which will clarify the setting, modification, disclosure, and evaluation of these benchmarks, thereby stabilizing market expectations and improving investor confidence [2][3]. - The plan aims to optimize the fee structure for funds, including reducing subscription fees and management fees, to lower investor costs and enhance industry competitiveness [3][4]. Group 2: Performance Evaluation and Incentives - The action plan seeks to reform the performance evaluation system of fund companies, shifting the focus from scale and short-term performance to long-term investment returns and investor profitability [5][7]. - Fund managers will be evaluated based on a long-term performance mechanism, with a minimum of 80% weight on three-year performance metrics, ensuring that their compensation is directly linked to investor returns [7][8]. - The plan encourages fund companies to increase the issuance and management of equity funds, which are crucial for providing long-term capital support to the real economy [7][9]. Group 3: Focus on Equity Funds - The action plan addresses the declining scale of actively managed equity funds, which have decreased by approximately 36.59% over the past three years, and aims to enhance the proportion of equity investments in public funds [10][13]. - It proposes various measures, including optimizing the registration process for equity funds and enhancing the evaluation criteria for fund sales institutions to promote equity fund growth [14][15]. - The emphasis on equity funds is intended to improve market stability and effectiveness, as well as to align with international financial market standards [15].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued the "Action Plan for Promoting the High-Quality Development of Public Funds," aiming to address long-standing issues in the public fund industry, such as the focus on scale over returns and the "guaranteed income" phenomenon [1][11]. Group 1: Key Measures of the Action Plan - The Action Plan outlines 25 reform measures across six areas, including optimizing fund operation models, improving assessment and evaluation systems, promoting equity funds, ensuring risk management, strengthening regulatory enforcement, and facilitating high-quality development [1][11]. - A significant focus is on aligning the interests of fund managers with those of investors, particularly through the introduction of a performance-based floating management fee model for actively managed equity funds [11][12]. Group 2: Industry Impact - The implementation of the Action Plan is expected to shift the industry from a focus on scale to a focus on returns, enhancing the quality of public funds and investor satisfaction [1][12]. - The plan mandates that at least 60% of newly registered actively managed equity funds adopt the floating fee structure within a year, which is anticipated to improve the performance accountability of fund managers [11][12]. Group 3: Addressing Fund Management Issues - The Action Plan aims to tackle issues such as "style drift" and misalignment of fund investments with their stated objectives, requiring clear performance benchmarks for each fund to ensure transparency and accountability [14]. - It emphasizes long-term performance assessments, with at least 80% of the evaluation weight given to three-year performance metrics, thereby discouraging short-term speculative trading by fund managers [12][14].