Investment Rating - The report maintains a "Positive" investment rating for the investment banking and brokerage industry [10] Core Insights - The report highlights that the performance of the non-bank sector has lagged behind the broader market since the beginning of 2025, with a slight market correction observed this week. However, the first quarter results for brokerages show stable improvement, suggesting a favorable environment for investment [2][7] - It is recommended to actively increase allocations in April, with a focus on stocks that exhibit both performance and valuation growth. The report emphasizes the importance of patience in waiting for catalysts while continuing to invest in high-growth, undervalued stocks [7] Summary by Sections Market Performance - The non-bank financial index increased by 1.2% this week, outperforming the CSI 300 by 0.8%. However, year-to-date, the non-bank financial index is down 8.6%, underperforming the CSI 300 by 4.9% [8] - The average daily trading volume in the market rose to 11,466.36 billion yuan, a 3.43% increase week-on-week, while the margin trading balance decreased slightly to 1.81 trillion yuan [8][39] Brokerage Performance - The report notes that the brokerage sector's performance is improving, with a recommendation to focus on high-growth, low-valuation stocks during the ongoing market correction [7] - Specific stocks recommended include New China Life Insurance, China Life Insurance, Hong Kong Exchanges and Clearing, CITIC Securities, Dongfang Wealth, and Tonghuashun, with a focus on M&A themes for China Galaxy and stable dividend stocks like China Pacific Insurance and Jiangsu Jinzhong [7] Financial Market Trends - The report indicates that the financial supply-side reform is accelerating, particularly in the brokerage industry, which is progressing rapidly. This environment presents opportunities for thematic investments in the short term [7] - The report also tracks key financial metrics, noting that the average daily turnover and trading volume have shown signs of recovery, indicating a potential upward trend in brokerage profitability [39][45] Insurance Sector Insights - The insurance sector saw a cumulative premium income of 21,745 billion yuan in March 2025, reflecting a year-on-year increase of 0.93%. However, life insurance premiums showed a slight decline [25][29] - The total assets of the insurance industry reached 37.84 trillion yuan, with a net asset scale of 3.52 trillion yuan, indicating a healthy growth trajectory [29][30] Investment Banking Activity - In March 2025, equity financing reached 568.10 billion yuan, a significant increase of 1141.3% month-on-month, while bond financing also saw a rise to 8.69 trillion yuan, up 26.5% [49][50] - The report anticipates an increase in stock underwriting volumes due to the promotion of refinancing regulations and registration systems, while bond underwriting will need to be monitored closely in relation to interest rate fluctuations [50]

Core Viewpoint - Postal Savings Bank of China (PSBC) has demonstrated a robust performance in its 2024 annual report, achieving a balance between stability and growth amidst a challenging economic environment and narrowing industry interest margins [1][12]. Group 1: Financial Performance - Total assets reached 17.08 trillion yuan, an increase of 8.64% year-on-year, while total liabilities grew by 8.69% to 16.05 trillion yuan [1]. - Operating income was 348.775 billion yuan, reflecting a year-on-year growth of 1.83%, placing it among the top state-owned banks [1]. - Net profit totaled 94.592 billion yuan, maintaining moderate growth despite a high base [1]. - The net interest margin stood at 1.87%, continuing to lead the industry [1]. Group 2: Retail Banking Strength - PSBC has reinforced its core competitive advantages in retail banking, with over 670 million personal customers and an asset under management (AUM) of 16.69 trillion yuan, a 9.6% increase [3]. - Personal deposit balance reached 13.6 trillion yuan, supported by a low-cost funding model, which is particularly valuable in a declining interest rate environment [3]. - The bank's non-performing loan (NPL) ratio was 0.90%, the lowest among state-owned banks, with a provision coverage ratio of 286% [4]. Group 3: New Growth Areas - PSBC is expanding into technology finance, green finance, and pension finance, with non-interest income showing growth [5][6]. - In technology finance, the bank served over 90,000 tech enterprises, with financing balances exceeding 500 billion yuan, a growth of over 40% [7]. - Green loan balances reached 781.7 billion yuan, growing by 22.55%, and the bank has introduced innovative products to support sustainability goals [7]. Group 4: Asset and Liability Management - The bank's loan-to-asset ratio has improved, indicating enhanced asset yield capabilities, while liquidity coverage ratios remain within safe limits [10]. - Core Tier 1 capital adequacy ratio is at 9.56%, providing ample room for business expansion [10]. - Non-interest income grew by 3.21%, with contributions from wealth management, custodial services, and investment banking increasing [10]. Group 5: Future Outlook - The bank aims to maintain its strategic focus on serving agriculture, rural areas, and small to medium enterprises while optimizing its asset and liability structure [11][12]. - The leadership emphasizes the importance of adapting to low-interest-rate challenges and enhancing operational efficiency through digital transformation [11][12].

Core Viewpoint - The reduction in the number of banking institutions in China, particularly rural and small banks, reflects the ongoing trend of consolidation and restructuring in the financial sector, driven by regulatory policies aimed at risk management and market exit strategies [1][2][3]. Group 1: Current Status of Banking Institutions - As of the end of December 2024, there are 4,295 banking institutions in China, a decrease of 195 from the end of 2023 and 307 from the end of 2021 [1][2]. - The number of rural commercial banks, rural credit cooperatives, and village banks has significantly decreased, accounting for over 90% of the total reduction in banking institutions [2]. Group 2: Trends in Small and Medium-Sized Banks - The trend of small and medium-sized banks exiting the market is a result of deeper market-oriented reforms and increased competition, which demands higher sustainability from financial institutions [3][4]. - Regulatory bodies are pushing for the consolidation of rural small banks to optimize resources and improve risk management capabilities [5]. Group 3: Future Outlook and Strategies - The future of small and medium-sized bank reforms is expected to follow three main trends: accelerated consolidation, a return to core functions and specialized development, and continued risk resolution efforts [5]. - Regulatory policies will guide the integration of small banks through mergers and acquisitions, aiming to reduce the number of institutions while enhancing their operational efficiency and risk resilience [5].