Investment Rating - The report maintains a "Positive" investment rating for the investment banking and brokerage industry [7] Core Insights - The report highlights that brokerage firms are expected to see significant growth in mid-year performance, driven by market conditions. The insurance sector is also anticipated to experience high growth in new business value due to an increase in value rates. The equity market is on an upward trend, leading to favorable investment returns and profit growth. Current valuations imply a pessimistic long-term investment outlook, but the report suggests that valuations remain safe considering medium to long-term interest rate spreads [4][5] - The report recommends several companies based on their stable profit growth and dividend rates, including Jiangsu Jinzhong, China Ping An, and China Pacific Insurance. Additionally, it suggests companies like New China Life, China Life, Hong Kong Exchanges, CITIC Securities, Dongfang Wealth, Tonghuashun, and Jiufang Zhitu Holdings based on their performance elasticity and valuation levels [4][5] Summary by Sections Brokerage Performance - This week, some brokerage firms disclosed performance forecasts, indicating a significant increase in mid-year results, which enhances their future allocation value. The report emphasizes the stability of profit growth and dividend rates as key factors for investment recommendations [4][5] Market Overview - The non-bank financial index increased by 3.5% this week, outperforming the CSI 300 by 1.8%. Year-to-date, the non-bank financial index has risen by 6.6%, with a relative underperformance of 1.7% against the CSI 300. The overall performance of the non-bank sector has been strong this week [5][18] Insurance Sector - In June 2025, the cumulative premium income for the insurance industry reached 373.5 billion yuan, reflecting a year-on-year increase of 5.31%. The report notes that both property and life insurance segments showed positive growth, with property insurance income at 96.45 billion yuan and life insurance income at 277.05 billion yuan [22][23] Investment Business - The report indicates that the equity market is recovering, with the CSI 300 index rising by 1.69% and the ChiNext index by 2.76%. The brokerage firms' investment assets are primarily composed of bonds, with equity investments accounting for approximately 10%-30% of their portfolios [42][44] Financing Activities - In June 2025, the equity financing scale reached 544.19 billion yuan, a significant increase of 3140.2% month-on-month, while bond financing totaled 8.83 trillion yuan, up by 21.3%. This indicates a recovery in both equity and bond financing activities [46][49] Asset Management - The report notes a rebound in the issuance of collective asset management products, with June 2025 seeing an issuance of 9.732 billion units, a 125.8% increase from the previous month. However, the new fund issuance decreased by 10.3% in June [51][53]

Core Insights - The report highlights a significant increase in domestic excavator sales, with a year-on-year growth exceeding 20% in the first half of the year, indicating a recovery in the construction machinery sector [5] - The investment in ultra-high voltage projects is accelerating, with expected investments surpassing 650 billion yuan in 2025, suggesting strong growth potential in the energy sector [5] - Global semiconductor sales reached 59 billion USD in May, marking a year-on-year increase of 19.8%, reflecting robust demand in the technology sector [5] Industry Updates - The National Development and Reform Commission has allocated an additional 10 billion yuan for central budget investments to support employment initiatives, which is expected to create jobs for 310,000 key groups [4] - Seven departments have issued a document to expedite the development of a universal childcare service system, indicating a focus on social infrastructure [4] - The Hong Kong Securities and Futures Commission is expanding the range of institutions participating in the southbound trading scheme, which may enhance market liquidity [4] Company Focus - Wanma Co., Ltd. (002276) is set to increase its annual production capacity to 60,000 tons after the completion of its high-performance polymer insulation project, raising its market share from 15% to approximately 20% [6] - United Chemical (301209) plans to invest 120 million yuan in Zhuoguangrui Technology, acquiring a 19.35% stake post-investment [6] - Jinling Mining (000655) anticipates a net profit growth of 66.48% to 111.54% year-on-year for the first half of the year, driven by increased sales of its main product, iron concentrate [6] - Keda Intelligent (300222) has a subsidiary that holds an 18% stake in a company supplying charging piles for Xiaomi's electric vehicles, indicating strategic partnerships in the EV sector [6] Market Review and Outlook - On July 8, the market opened slightly higher and experienced a steady upward trend, with the Shanghai Composite Index closing up 0.7% at 3,497 points, reaching a new high for the period [7] - The trading volume in the Shanghai and Shenzhen markets increased to 1.4 trillion yuan, up 240 billion yuan from the previous trading day, indicating heightened market activity [7] - The report notes a rotation in market sentiment, with funds shifting from defensive dividend sectors to undervalued growth sectors, particularly in the ChiNext index, which shows greater elasticity [8] - The recent emphasis on anti-involution policies and supply-side reforms suggests potential investment opportunities in sectors aligned with these themes [8]