Investment Rating - The industry investment rating is maintained at "Leading the Market - A" [3][4][7] Core Insights - The report emphasizes the importance of regulatory improvements in underwriting and issuance, which enhance the transparency and standardization of the market, ultimately protecting investor interests and supporting high-quality capital market development [4][7] - It highlights the potential for certain brokerage firms to achieve steady growth through both external and internal development strategies, including exploring overseas business opportunities and leveraging competitive advantages [4][7] Market Performance - During the period from February 2 to February 8, major indices experienced declines, with the Shanghai Composite Index down by 1.27%, the CSI 300 down by 1.33%, and the ChiNext Index down by 3.28% [5][8] - The average daily trading volume in A-shares was 2.40 trillion yuan, reflecting a 21.43% decrease compared to the previous period [5][8] Key Data Tracking 1) Market Performance and Scale: The major indices showed mixed performance, with the Shanghai Composite Index down 1.27% and the CSI 300 down 0.59% [8][12] 2) Credit Business: As of February 6, the market had 2,898.07 million shares pledged, accounting for 3.66% of the total share capital, with a margin balance of 2.66 trillion yuan, a decrease of 1.90% [12][21] 3) Fund Issuance: In December 2025, new fund issuance totaled 521.95 billion units, with 134 funds launched, marking a 1.62% decrease [12][19] 4) Investment Banking: In December 2025, the equity underwriting scale was 703.18 billion yuan, including 314.12 billion yuan from IPOs and 389.06 billion yuan from refinancing [12][19] 5) Bond Market: The total price index of bonds decreased by 2.09% compared to the beginning of 2025, with the 10-year government bond yield at 1.81%, up by 20.25 basis points [12][13]

Core Viewpoint - The non-bank financial sector is currently undervalued, with a significant potential for valuation recovery as the price-to-book (PB) ratio has declined faster than the return on equity (ROE) from 2021 to 2023 [1] Group 1: Non-Bank Financial Sector - The valuation level of the non-bank financial industry is below the long-term trend, indicating a large room for recovery [1] - The basic fundamentals are expected to bottom out in 2024, leading to noticeable recovery and increased price elasticity [1] - The new regulations for public funds may lead to a return to benchmark styles, with banks and non-banks likely to see a flow of funds back into these sectors [1] Group 2: Brokerage Sector - Despite weak excess returns over the past year, the current valuation remains low, and a breakthrough in the index could trigger a beta rally [1] - Industry mergers and acquisitions are expected to provide thematic opportunities within the brokerage sector [1] Group 3: Insurance Sector - The insurance sector is likely to benefit from policy catalysts, such as the reduction of equity investment risk factors by insurance funds, and improvements in fundamentals [1] - This sector is expected to demonstrate elasticity ahead of others due to these factors [1] Group 4: Securities ETF - The Securities ETF (512880) tracks the securities company index (399975), which includes listed companies in the securities industry, reflecting the overall performance of the sector [1] - The index has a high industry concentration and effectively captures market dynamics and performance trends within the securities industry [1]

Market Overview - The Shanghai Composite Index decreased by 0.49% last week, closing at 3279.03 points, with a high of 3296.93 points [1] - The Shenzhen Component Index fell by 0.17%, ending at 9899.82 points, with a peak of 9926.9 points [1] - The ChiNext Index slightly increased by 0.04%, closing at 1948.03 points, reaching a maximum of 1954.62 points [1] - In global markets, major indices saw gains: Nasdaq Composite up 3.42%, Dow Jones Industrial Average up 3.0%, and S&P 500 up 2.92% [1] - In the Asia-Pacific region, the Hang Seng Index rose by 2.38% and the Nikkei 225 increased by 3.15% [1] New Stock Issuance - Two new stocks were issued last week: Ze Run New Energy (301636.SZ) and Tian Gong Co., Ltd. (920068.BJ), both on April 28, 2025 [2] Margin Trading - The total margin trading balance in the Shanghai and Shenzhen markets was 1781.445 billion yuan, with a financing balance of 1770.655 billion yuan and a securities lending balance of 10.79 billion yuan [3] - The margin trading balance decreased by 15.926 billion yuan compared to the previous week [3] - The Shanghai market's margin trading balance was 909.776 billion yuan, down by 7.881 billion yuan, while the Shenzhen market's balance was 871.669 billion yuan, down by 8.045 billion yuan [3] - A total of 3419 stocks had margin buying, with 9 stocks exceeding 1 billion yuan in buying amount, led by Tuo Wei Information (18.56 billion yuan), BYD (15.79 billion yuan), and Dongfang Fortune (13.9 billion yuan) [3][4] Fund Issuance - Eight new funds were launched last week, including Zhongjin Consumption Upgrade C, Taikang Stable Dual Benefit Bond D, and others [5] Share Buybacks - Fourteen companies announced share buybacks last week, with the highest amounts executed in the following sectors: electric power equipment, non-bank financials, and steel [6][7]