Investment Rating - The industry investment rating is "Positive" indicating an expected overall return exceeding the CSI 300 Index by more than 5% in the next six months [3][36]. Core Viewpoints - The report highlights the recent implementation of new regulations for universal insurance, which strengthens liability management [1]. - The overall market performance shows that the Shanghai Composite Index, CSI 300 Index, and ChiNext Index have increased by 0.56%, 0.38%, and 1.74% respectively [9]. - The non-bank financial sector index increased by 1.17%, outperforming the CSI 300 Index by 0.79 percentage points [9]. Sub-industry Ratings - The ratings for sub-industries are as follows: - Securities: Positive - Insurance: Positive - Diversified Finance: Positive [3]. Recommended Companies and Ratings - Recommended companies include: - Founder Securities: Buy - Xiangcai Securities: Buy - China Life: Buy - ZhongAn Online: Increase Holding [3][34]. Market Performance Overview - The brokerage sector's PE-TTM valuation is 21.98x, and PB-LF valuation is 1.44x as of April 25, 2025 [5]. - The insurance sector's PEV valuations for major companies are as follows: - China Life: 0.61x - Ping An: 0.60x - China Pacific: 0.47x - New China Life: 0.50x [6]. Key Market Data - The average weekly stock trading volume in the two markets was 1.32 trillion yuan, a decrease of 31.81% week-on-week [5]. - The total balance of margin financing and securities lending was 1.80 trillion yuan, with a slight decrease of 0.07% [5]. Industry Dynamics - The China Securities Regulatory Commission released new regulations on information disclosure for listed companies, aiming to enhance corporate governance and protect minority shareholders [30]. - The National Financial Regulatory Administration issued guidelines to strengthen the regulation of universal life insurance products, including setting minimum guaranteed interest rates and prohibiting the development of universal insurance products with terms shorter than five years [33].

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report emphasizes the recovery of financial technology holdings as traditional brokerage and insurance holdings decline, indicating a shift in investment focus [3] - The report highlights the expected benefits from the central government's supportive policies aimed at stabilizing the economy and capital markets, which are anticipated to create investment opportunities [4] - The first quarter earnings reports are expected to exceed forecasts, particularly for companies like Jiangsu Jinzhong, which reported a 20% growth in revenue and pre-provision profit [4] Summary by Sections Industry Overview - The non-bank financial sector is experiencing a significant shift with a 24% decline in traditional brokerage and insurance holdings, while financial technology holdings are on the rise [2] Brokerage Sector - The brokerage sector is benefiting from a year-on-year increase in trading volume, with daily average stock fund turnover reaching 1.38 trillion, up 2% week-on-week [5] - Key financial technology companies reported strong first-quarter earnings, with notable profit increases such as 39% for Dongfang Caifu and 726% for Zhinanzhen [5] - The brokerage sector is viewed positively due to low valuations and strong first-quarter performance, with a focus on retail-oriented brokers and financial technology [5] Insurance Sector - The insurance sector faced challenges in the first quarter due to market volatility affecting net profits, with some companies reporting declines [5] - New regulations on universal insurance are expected to lower liability costs and mitigate risks associated with interest rate fluctuations [5] - The report suggests monitoring the impact of capital market fluctuations on insurance companies' net assets and profits [5] Recommended and Beneficiary Stocks - Recommended stocks include Jiangsu Jinzhong, China Pacific Insurance, and Hong Kong Stock Exchange, among others [6] - Beneficiary stocks include Guoxin Securities, Jiu Fang Zhitu Holdings, and China Galaxy Securities [6]