Investment Rating - The report maintains a positive investment rating for the non-bank financial sector, highlighting the potential for continued market recovery and growth in both the insurance and securities segments [4][42]. Core Insights - The report emphasizes the sustainable performance of the non-bank sector, particularly in insurance, where Sunshine Insurance reported a total premium income of 80.81 billion yuan, a year-on-year increase of 5.7%, and a new business value of 4.01 billion yuan, up 47.3% year-on-year [1]. - The revised classification management measures for securities companies aim to enhance their service to the real economy, focusing on high-quality development and supporting differentiated growth for small and medium-sized firms [2][3]. - The report suggests that the combination of proactive fiscal policies and moderately loose monetary policies is expected to boost market sentiment and investment returns, particularly in the insurance sector [4][42]. Summary by Sections Market Review - The broad market indices saw significant increases, with the Shanghai Composite Index rising by 3.49% and the Shenzhen Component Index by 4.57% during the week [8]. - The non-bank financial sector also experienced a positive trend, with the multi-financial index increasing by 4.18% [8]. Securities Sector - The report details that the total trading volume in the A-share market reached 14.98 trillion yuan, with a daily average trading amount of 2.50 trillion yuan, reflecting a 23.84% increase week-on-week [16]. - The IPO underwriting scale for the year reached 59.244 billion yuan, while refinancing underwriting amounted to 821.754 billion yuan [16]. Insurance Sector - Sunshine Insurance's total premium income for the first half of 2025 was reported at 80.81 billion yuan, with a net profit of 3.39 billion yuan, marking a 7.8% increase year-on-year [1]. - The report highlights a shift in the insurance sector towards higher new business value and improved liability quality, with the internal value reaching 128.49 billion yuan, an 11% increase from the previous year [1]. Investment Recommendations - The report recommends focusing on key insurance companies such as Sunshine Insurance, China Pacific Insurance, and China Life, as well as top securities firms like CITIC Securities and Huatai Securities [4][43]. - The anticipated benefits from the revised classification evaluation system for securities firms are expected to favor leading firms and those with distinctive equity business lines [4][42].

Investment Rating - The report maintains a positive outlook on the non-bank sector, particularly in insurance and securities, suggesting a "Recommended" rating for key companies in these sectors [3][41]. Core Insights - The report highlights a reduction in the preset interest rates for life insurance products, with ordinary life insurance at 2.0%, participating insurance at 1.75%, and universal insurance at 1.0%. This adjustment is expected to optimize the liability structure of insurance companies and promote a shift towards non-guaranteed income products [1][3]. - The China Securities Regulatory Commission (CSRC) is focused on stabilizing the capital market and enhancing market vitality through reforms, which is anticipated to boost investor confidence and market performance [2][3]. - The report emphasizes the positive impact of recent monetary policies, including interest rate cuts, which are expected to enhance market sentiment and support the valuation recovery of quality listed companies [3][41]. Summary by Sections Market Review - Major indices showed positive performance, with the Shanghai Composite Index up by 1.67% and the Shenzhen Component Index up by 2.33% during the week [7]. - The non-bank financial sector saw a mixed performance, with the securities index rising by 4.82% [7][8]. Securities Sector - The report notes that the total trading volume in the A-share market reached 10.66 trillion yuan, with a daily average trading volume of 1.78 trillion yuan, reflecting a 14.20% increase week-on-week [16]. - The IPO underwriting scale for the year reached 560.64 billion yuan, while refinancing underwriting amounted to 8050.88 billion yuan [16][18]. Insurance Sector - The report indicates that the life insurance premium growth rate for major companies like China Life and Ping An Life has shown positive trends, with significant increases in premium income [24][25]. - The adjustment of preset interest rates is expected to lower the liability costs for insurance companies, enhancing their financial stability [1][3]. Investment Recommendations - The report suggests focusing on key insurance companies such as China Pacific Insurance, Sunshine Insurance, and Ping An Insurance, as well as leading securities firms like CITIC Securities and Huatai Securities [41][42]. - It also highlights potential benefits for non-bank institutions from the implementation of stablecoin regulations and cross-border payment innovations [3][41].

Core Viewpoint - The expected reduction in the predetermined interest rate for ordinary life insurance products is becoming a consensus in the industry due to the continuous decline in market interest rates [1][2]. Group 1: Predetermined Interest Rate Adjustment - The upcoming second quarter meeting of the expert advisory committee may lead to a further reduction in the predetermined interest rate research value for ordinary life insurance products, which is currently at 2.13%, down from 2.34% at the beginning of the year [1][2]. - If the research value is announced to be below 2.25%, it will trigger the adjustment mechanism for the maximum predetermined interest rates of life insurance products [2]. - The anticipated research value for the second quarter of 2025 is estimated to be around 2.01%, a decrease of 12 basis points from the previous value [2]. Group 2: Key Interest Rates Impact - The expected reduction in the predetermined interest rate is primarily driven by the decline in three key interest rates: the 5-year Loan Prime Rate (LPR) at 3.5%, the 5-year fixed deposit rate at 1.3%, and the 10-year government bond yield at approximately 1.72% [3]. - The maximum predetermined interest rates for ordinary life insurance products are expected to decrease by 0.5 percentage points, with new limits projected at 2.0% for ordinary products, 1.5% for participating products, and 1.0% for universal products [3][4]. Group 3: Impact on Insurance Companies - The reduction in predetermined interest rates is expected to optimize the liability costs for insurance companies, allowing for increased market entry of insurance funds due to lower liability costs and a rising preference for equity investments [5][6]. - The shift towards floating yield products is encouraged to enhance asset-liability management and achieve high-quality development in the industry [6]. - The long-term outlook suggests that traditional insurance predetermined rates may reach their lowest levels since the 1990s, providing more growth opportunities for floating yield products [6]. Group 4: Market Reactions - The anticipated reduction in predetermined interest rates may boost product sales, although the "炒停售" phenomenon (speculative buying and selling) is expected to be less pronounced compared to previous years [7].