Core Viewpoint - The recent draft of the "Regulations on the Sales Behavior of Publicly Raised Securities Investment Funds" aims to enhance compliance and standardization in the fund sales industry, marking a significant shift towards high-quality development and stricter regulatory oversight [1][10][21] Group 1: Sales Behavior Regulations - The draft consists of nine chapters and 37 articles, addressing various aspects such as general promotion, live marketing, and performance assessment of sales activities [1][10] - The new regulations build upon previous guidelines from the China Securities Regulatory Commission (CSRC) and introduce more detailed requirements for emerging sales models in the fund industry [1][10] Group 2: Performance Display Requirements - Fund performance must be displayed for a minimum of six months, and annualized returns cannot be shown for funds with less than one year of operation [2][12] - Rankings must be based on data from fund evaluation agencies for periods of three years or more, including necessary disclosures about the evaluation agency [2][12] Group 3: Prohibited Marketing Practices - The use of terms like "guaranteed returns" or "positive return probability" is prohibited to prevent misleading investors about risks [3][14] - Fund managers and sales institutions are restricted from linking fund awards to individual fund managers, emphasizing the importance of the research team and investment platform instead [3][4][14] Group 4: Fund Size and Growth Promotion - Fund managers and sales institutions are not allowed to promote fund size or growth, breaking the trend of "size equals income" [5][15] - The focus should shift towards demonstrating excess returns over benchmarks and risk-return ratios, rather than emphasizing fund size [5][15] Group 5: Live Marketing Regulations - Live marketing personnel must have appropriate qualifications, and platforms must disable tipping features [6][18] - A comprehensive compliance mechanism is required for live broadcasts, including pre-approval of scripts and post-broadcast record-keeping for at least 20 years [6][18][19] Group 6: Sales Performance Assessment - Sales performance assessments must include both the status of fund sales and investor profit/loss situations, with a focus on long-term investment outcomes [9][20] - The regulations aim to shift the industry focus from short-term sales tactics to long-term investor retention and satisfaction [9][20] Group 7: Overall Impact on the Industry - The draft represents a critical step in reshaping the fund sales ecosystem, promoting a shift from a scale-driven approach to one focused on investor interests [10][21] - The implementation of these regulations is expected to enhance investor trust and the overall quality of the fund industry [10][21]

Core Insights - The report emphasizes that new regulations in fund sales are reshaping the fund ecosystem, creating opportunities for investment as the spring market approaches [1][2] - The insurance sector is expected to see high growth in performance, supported by the introduction of a new commercial health insurance drug directory, which encourages product innovation [2][16] - The report suggests focusing on specific stocks within the insurance sector, including Xinhua Insurance, China Life, Ping An, and others, as they are likely to benefit from these developments [2][16] Weekly Performance - As of December 13, 2025, the Shanghai Composite Index reported a decrease of 0.34%, while the Shenzhen Component Index increased by 0.84% [11] - The average daily trading volume in the Shanghai and Shenzhen markets was 1.95 trillion yuan, reflecting a week-on-week increase of 15.14% [6] Industry Dynamics and Weekly Commentary Insurance Sector - The performance of listed insurance companies is expected to continue high growth, with long-term interest rate spreads showing marginal improvement [13][16] - The 10-year government bond yield was 1.84%, down 1 basis point from the previous week, providing a supportive environment for insurance stock valuations [13][16] Securities Sector - The issuance of the "Publicly Raised Securities Investment Fund Sales Behavior Norms (Draft for Comments)" aims to systematically regulate sales behavior and protect investor rights [17][18] - The new regulations mark a shift from a scale-driven approach to one focused on investor interests, promoting a fundamental transformation in the industry [18][23] Key Company Valuation and Financial Analysis - The report provides detailed valuation metrics for key companies in the insurance and securities sectors, indicating a "Buy" rating for several firms based on their projected earnings and price-to-earnings ratios [7][8] - For instance, Ping An is rated with a target price of 76.65 yuan per share, while Xinhua Insurance has a target price of 94.21 yuan per share, reflecting strong expected performance [7] Regulatory and Policy Environment - The national financial system work conference emphasized the need for risk prevention, strong regulation, and promotion of high-quality development in the financial sector [25][26] - The focus will be on stabilizing the market, enhancing financial governance, and addressing local government debt risks, which will shape the future landscape of the financial industry [25][29]