Investment Rating - The report maintains an "Accumulate" rating for the non-bank financial industry [1] Core Views - The non-bank financial sector has shown a mixed performance recently, with all sub-sectors underperforming the CSI 300 index over the last five trading days [4][9] - The report highlights significant improvements in trading volumes and regulatory developments in the securities sector, alongside a new health insurance policy in Shanghai aimed at supporting commercial insurance and innovative medical products [4][26] Summary by Sections Non-Bank Financial Sub-Sector Performance - Over the last five trading days (August 4-8, 2025), the non-bank financial sector overall increased by 0.70%, while the CSI 300 index rose by 1.23% [9] - Year-to-date performance shows the insurance sector leading with a 12.38% increase, followed by multi-financial at 5.70%, and securities at 2.65% [10] Securities Sector - Trading volume has significantly increased, with the average daily trading amount for August reaching 19,575 billion yuan, a year-on-year increase of 183.62% [14] - The margin financing balance reached 20,131 billion yuan, up 41.10% year-on-year [14] - The average price-to-book (PB) ratio for the securities sector is projected at 1.3x for 2025, indicating potential for quality brokers like CITIC Securities and Dongfang Wealth [19] Insurance Sector - The report notes a reduction in the preset interest rate to 1.99%, triggering conditions for further adjustments [20] - The Shanghai health insurance policy aims to enhance cooperation between commercial insurance and innovative medical products, potentially expanding the market [26][27] - The insurance sector's valuation is currently between 0.60-0.92 times the expected present value (P/EV) for 2025, suggesting a low historical valuation and maintaining an "Accumulate" rating [28] Multi-Financial Sector - The trust industry saw its asset scale reach 29.56 trillion yuan by the end of 2024, with a year-on-year growth of 23.58% [31] - The futures market recorded a trading volume of 740 million contracts in June 2025, with a transaction value of 52.79 trillion yuan, reflecting a year-on-year increase of 28.91% [34] - The report suggests that the futures sector may pivot towards innovative risk management services as a key growth area [39] Industry Ranking and Key Company Recommendations - The recommended ranking for investment is insurance > securities > other multi-financial sectors, with key companies including China Ping An, New China Life, and CITIC Securities highlighted for their growth potential [44]