Investment Rating - The report maintains a "Recommended" rating for the non-bank financial sector, indicating a potential upside of over 15% relative to the benchmark index within the next 12 months [15]. Core Insights - A comprehensive financial support policy has been introduced, which is expected to create a favorable allocation window for the non-bank sector [4]. - The central bank has intensified macroeconomic control by implementing a series of measures, including interest rate cuts and reserve requirement ratio reductions, aimed at maintaining ample liquidity in the market [4][11]. - The report emphasizes the importance of structural monetary policy tools to guide funds towards technology innovation, consumption, and inclusive finance, which will likely benefit the non-bank sector [4][7]. Summary by Sections Monetary Policy Measures - The central bank has introduced 10 measures across three categories: quantity-based policies (e.g., reducing the reserve requirement ratio by 0.5 percentage points), price-based policies (e.g., lowering the 7-day reverse repurchase rate from 1.5% to 1.4%), and structural policies (e.g., increasing the quota for technology innovation loans by 300 billion) [4][11]. - The total liquidity provided through these measures is estimated to be around 1 trillion yuan [11]. Capital Market Support - The central bank has optimized two monetary policy tools to support the capital market, merging the quotas for securities and stock repurchase loans to a total of 800 billion yuan [5][11]. - This merger is expected to enhance the willingness and capacity of non-bank financial institutions and listed companies to repurchase shares, thereby stabilizing the capital market [5][7]. Market Stability Initiatives - The report highlights the role of the Central Huijin Investment Company as a "stabilization fund" to support market stability and mitigate external risks [6][13]. - The China Securities Regulatory Commission (CSRC) plans to enhance the reform of the Sci-Tech Innovation Board and the Growth Enterprise Market to better support mergers and acquisitions, thereby improving innovation capabilities [8][13]. Cross-Border Financing - The report discusses measures to facilitate cross-border financing for domestic companies, encouraging qualified firms to list abroad and supporting the return of quality Chinese concept stocks to domestic markets [9][10]. - These initiatives aim to broaden financing channels and enhance liquidity in both A-shares and H-shares [9]. Investment Recommendations - The report suggests focusing on leading brokerage firms such as CITIC Securities, Huatai Securities, and China Galaxy, as well as high-quality financial institutions like the Hong Kong Stock Exchange, due to expected performance recovery in the brokerage sector [10].

Core Viewpoint - The fundamental aspects of China's economy remain stable, advantageous, resilient, and full of potential, with a solid momentum for high-quality development [1] Group 1: Economic Stability - The current economic situation requires unity and collective effort to ensure progress in domestic affairs [1] - The "package of financial policies" reflects determination and confidence, showcasing capabilities that will gradually translate into sustained economic improvement and stable capital market operations [1] Group 2: Financial Policy - On May 7, leaders from three financial regulatory bodies appeared at a press conference to discuss the "package of financial policies" aimed at stabilizing the market and expectations [1]