Investment Rating - The report maintains a positive outlook on the non-bank financial sector, indicating a favorable investment rating for the industry [2]. Core Insights - The report highlights that the "H+A" policy is expected to introduce new capital into the A-share market, benefiting brokerage firms as intermediaries. The recent policy allows companies listed in Hong Kong to return to the Shenzhen Stock Exchange, which could enhance trading activity and expand the market capitalization of A-shares [2][3]. - The upcoming Lujiazui Forum is anticipated to announce significant financial policies, which could further impact the capital market positively [2]. - The report emphasizes the ongoing mergers and acquisitions in the industry, suggesting that active trading and increased client deposits will drive brokerage firms' performance in the first half of 2025 [2]. Summary by Sections Market Review - The Shanghai Composite Index closed at 3,864.18 with a slight decline of 0.25%, while the non-bank index rose by 1.16% to 1,787.09. The brokerage, insurance, and diversified financial sectors reported increases of 0.82%, 2.06%, and 0.43%, respectively [5][6]. Non-Bank Industry Insights - The report notes that the insurance sector is seeing a rise in stock investments, with companies like Xinhua Insurance planning to invest up to 15 billion RMB in a private equity fund, indicating a growing interest in long-term stock investments [2][3]. - The report suggests that the insurance sector's performance is expected to improve in the second quarter of 2025, with new business performance likely to recover [2]. Individual Stock Highlights - In the insurance sector, notable stock performances include China Life (+1.17%), Ping An (+2.00%), and Xinhua Insurance (+2.80%) in A-shares, while in H-shares, China Re (+6.67%) and China Pacific (+10.36%) showed significant gains [7]. - For the brokerage sector, the top performers included Xinda Securities (+9.67%) and Xiangcai Securities (+7.57%) [7]. Important Data - As of June 13, 2025, the average daily stock trading volume was 12,994.85 billion RMB, reflecting a 1.33% increase from the previous month [48]. - The margin trading balance stood at 18,213.25 billion RMB, indicating a year-on-year increase of 15.9% [52]. Policy Developments - The report discusses recent policy initiatives aimed at enhancing cooperation between state-owned and private enterprises, which could lead to increased investment opportunities in various sectors [17]. - The Hong Kong Securities and Futures Commission is actively working to attract diverse companies to list in Hong Kong, which may enhance market efficiency and competitiveness [18]. Recommendations - The report recommends focusing on leading brokerage firms with strong competitive positions, such as GF Securities, CITIC Securities, and Haitong Securities, as well as insurance companies like Xinhua Insurance and China Life [2].