Core Insights - In the third quarter of this year, the allocation ratio of equity assets by Chinese insurance funds has significantly increased, approaching historical highs, with a notable increase in investments in banks and dividend sectors such as steel and textiles [1] Summary by Category - **Investment Allocation** - The investment ratio of stocks and funds by insurance capital rose sharply to 15.5%, nearing the historical peak of 16.1% recorded in the first half of 2015 [1] - The investment ratios in bank deposits and bonds decreased by 0.7 and 0.8 percentage points respectively from the second quarter, now standing at 7.9% and 50.3% [1]

Investment Rating - The report maintains a "Positive" outlook on the non-bank financial sector, highlighting the potential for growth in wealth management and asset management businesses within brokerages [3][4]. Core Insights - The report indicates a significant shift of household deposits from traditional banks to capital markets, with a notable increase in non-bank institution deposits by 1.85 trillion yuan in October 2025, while household deposits decreased by 1.34 trillion yuan [4]. - The insurance sector shows robust growth, with insurance funds' investment balance reaching 37.5 trillion yuan by the end of Q3 2025, reflecting a 3.4% increase from Q2 2025 and a 12.6% increase year-on-year [4]. - The report emphasizes the increasing attractiveness of the equity market, which is expected to benefit brokerage firms' wealth management and asset management businesses [4]. Summary by Sections Market Performance - The Shanghai Composite Index closed at 4,628.14 with a weekly change of -1.08%, while the non-bank index rose slightly by 0.16% [7]. - The brokerage sector index decreased by 1.01%, while the insurance sector index increased by 2.63% [7]. Non-Bank Financial Data - As of November 14, 2025, the average daily trading volume in the stock market was 20,283.14 billion yuan, reflecting a slight decrease of 0.76% from the previous period [46]. - The margin trading balance reached 25,065.34 billion yuan, an increase of 34.4% compared to the end of 2024 [19]. Key Investment Recommendations - The report recommends focusing on brokerage firms that will benefit from the increased attractiveness of the equity market, specifically highlighting firms such as GF Securities, Huatai Securities, and China Galaxy Securities [4]. - In the insurance sector, companies like China Life, China Pacific Insurance, and AIA are recommended due to their strong performance and growth potential [4].

Core Viewpoint - China Ping An has increased its holdings in China Pacific Insurance and China Life Insurance H-shares, surpassing an 8% stake in both companies, indicating a positive outlook on the insurance sector's fundamentals [1] Group 1: Company Actions - In late August, China Ping An bought shares in China Pacific Insurance and China Life Insurance, with both holdings exceeding 8% [1] - The increase in stake occurred less than a month after surpassing the 5% threshold for regulatory disclosure [1] Group 2: Market Sentiment - The market interprets China Ping An's continued investment in insurance stocks as a positive signal, reflecting a consensus among insurers that the industry's fundamentals have bottomed out and are improving [1] - Several executives from listed insurance companies have recently stated that the A-share market has medium to long-term investment value, indicating plans to steadily increase equity asset allocation [1] Group 3: Investment Strategy - Insurers are focusing on optimizing their equity investment strategies to enhance the stability of investment performance [1]