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].

Report Industry Investment Rating No information provided. Core View of the Report - Due to the impact of risk - aversion sentiment, domestic stock indices continued to fluctuate weakly. It is recommended to make long - term allocations for IH2509 and IF2509, and move positions from IM2506 to IM2509 as the June contract of IM is approaching maturity and its annualized basis rate is relatively high [3]. Summary by Relevant Catalogs Market Performance - As of June 20, 2025, most domestic and foreign indices declined this week. The Nasdaq rose 0.22%, the S&P 500 fell 0.15%, and the Hang Seng Technology Index fell 2.08%. The Shanghai Composite Index fell 0.51%, the CSI 1000 Index fell 1.74%, the SSE 50 Index fell 0.10%, the ChiNext Index fell 1.66%, and the STAR 50 Index fell 1.55%. In terms of industries, most of the 31 Shenwan primary industry indices declined, with sectors such as beauty care, textile and apparel, and pharmaceutical biology falling more than 3%, while only a few sectors such as banking and communications rose [11][12]. Liquidity - In May, the growth rate of social financing was stable, and the growth rate of M2 declined slightly. The net MLF investment in May was 375 billion yuan, and the 10 - year government bond yield was around 1.65%. The growth rate of social financing remained relatively high, with government bond financing being an important support, but credit growth was still weak. The M2 growth rate declined slightly but remained stable overall, the M1 growth rate increased, and the M1 - M2 gap narrowed [22]. Trading Data and Sentiment - The escalation of the Israel - Iran conflict led to the weakening of stock indices this week. The trading volume of the two markets shrank to around one trillion yuan. The number of new A - share accounts opened in January was 1.57 million, in February was 2.83 million, in March was 3.06 million, in April dropped to 1.92 million, and in May continued to drop to 1.555 million [34]. Index Valuation - Index valuations are in the median range. As of June 20, 2025, the latest PB of the Shanghai Composite Index was 14.64 with a quantile of 64.72, and the latest PE of the Wande All - A Index was 19.18 with a quantile of 01.82. In terms of major stock indices, the valuation quantiles are in the order of CSI 1000 > CSI 500 > SSE 300 > SSE 50 [51]. Index Industry Weights (as of December 31, 2024) - In the SSE 50, the weights of banking, food and beverage, and non - bank finance are relatively high, at 19.4%, 16.57%, and 13.07% respectively, and the electronics industry has become the fourth - largest weighted industry. - The weights of the SSE 300 are relatively dispersed, with the top three weighted industries being banking, non - bank finance, and electronics. - The top three weighted industries of the CSI 500 and CSI 1000 are exactly the same, namely electronics, pharmaceutical biology, and power equipment, but the electronics industry in the CSI 1000 has a higher weight [52].

Investment Rating - The report maintains a "Buy" rating for leading securities firms, particularly focusing on those with advantages in brokerage, investment banking, and asset management, such as CITIC Securities, Huatai Securities, and China Galaxy [5][6]. Core Viewpoints - The performance of listed securities firms in Q1 2025 is expected to show a strong improvement trend, driven by active market trading and a recovery in capital markets since September 2024 [11][4]. - The overall revenue growth for listed securities firms is projected to reach 35% in Q4 2024 and 31% in Q1 2025, with net profit growth expected at 74% and 32% respectively [11][4]. - The report highlights a high pre-announcement rate for 2024 earnings among listed securities firms, with 80% of firms expecting a year-on-year increase in net profit [4][27]. Summary by Sections Industry Outlook - The securities industry is anticipated to maintain a high growth rate in Q1 2025, supported by active trading and a recovering capital market [11]. - The market's trading volume has significantly increased, with stock trading volume reaching 126 trillion yuan in Q4 2024, a year-on-year increase of 123% [2][15]. Business Segment Analysis 1. **Proprietary Trading** - The proprietary trading income is expected to see a slight decline in growth due to a mixed performance in stock and bond markets, with projected year-on-year growth of 51% in Q4 2024 and 35% in Q1 2025 [12][13]. 2. **Brokerage Business** - Brokerage income is likely to remain high, with expected year-on-year growth of 107% in Q4 2024 and 70% in Q1 2025, driven by increased trading activity [2][15]. 3. **Asset Management** - The asset management business is projected to stabilize, with a total asset management scale of 6.10 trillion yuan as of February 2025, reflecting a year-on-year growth of 2% [19][20]. 4. **Credit Business** - The credit business is expected to benefit from a high financing balance, with a projected year-on-year growth of 51% in Q1 2025 [3][22]. 5. **Investment Banking** - Investment banking revenues are anticipated to recover, with a projected year-on-year growth of 40% in Q1 2025, supported by an increase in refinancing and debt underwriting [24][25]. Company Performance Forecast - As of April 14, 2025, 11 listed securities firms have announced expected profit increases for Q1 2025, with average net profit growth reaching 49% [4][31]. - The report indicates that major firms like CITIC Securities and Huatai Securities are expected to show significant profit growth, with CITIC Securities projected to achieve a net profit of 241 million yuan in 2025, reflecting a 12% year-on-year increase [29][30].