Investment Rating - The industry investment rating is "Positive" (maintained) [2] Core Viewpoints - Recent adjustments in the market present left-side opportunities, with a focus on performance and style switching catalysts. The insurance and brokerage sectors have shown resilience despite geopolitical conflicts, with a positive long-term outlook driven by deposit migration and a slow bull market. The industry is experiencing favorable conditions, with the P/EV valuation of five A-share insurance companies dropping to a low of 0.75 times, and leading brokerages' PB and PE valuations at historical lows [6] - The brokerage sector is witnessing strong sales in mixed-asset funds, particularly in a low-interest-rate environment, indicating a shift in asset allocation for residents. The average daily trading volume for stock funds has increased significantly year-on-year, and the market is expected to maintain high activity levels, benefiting from wealth management and overseas expansion [7] - The insurance sector is benefiting from deposit migration, leading to high growth in individual insurance and bank insurance channels. Despite a temporary decline in new policy growth due to the timing of the Spring Festival, the overall trend remains positive, with major insurance companies expected to outperform the industry average [8] Summary by Sections Brokerage Sector - Daily average trading volume for stock funds is 3.05 trillion, down 6% week-on-week, but up 88% year-on-year. New fund establishment has also seen significant growth [7] - The brokerage sector's fundamentals are expected to remain strong, with low valuations and high potential for return on equity (ROE) improvements driven by wealth management and investment banking activities [7] Insurance Sector - In February 2026, the insurance market saw new single premiums reach 69 billion, a year-on-year increase of 6.9%. The cumulative new single premiums for January-February reached 281.4 billion, up 21.7% year-on-year [8] - The individual insurance channel reported a standard premium of 36.3 billion in January, reflecting a 36% year-on-year growth, indicating robust demand despite short-term fluctuations [8] Recommended Stocks - Recommended stocks include Huatai Securities, Guotai Junan, China Pacific Insurance, Tonghuashun, China Life, China Ping An, GF Securities, CICC, CITIC Securities, and Guosen Securities [9]

Investment Rating - The investment rating for the non-bank financial sector is "Positive" (maintained) [2] Core Insights - Recent adjustments in the market present left-side opportunities, with a focus on performance and style switching catalysts. The insurance and brokerage sectors have seen declines of -2.1% and -1.8% respectively, while the CSI 300 index increased by 0.2%. The long-term logic for insurance and brokerage remains unchanged, driven by deposit migration and a slow bull market, leading to positive trends in non-bank business and asset sides. The industry is experiencing favorable conditions, with the P/EV valuation of five A-share insurance companies dropping to a low of 0.75 times, and the PB and PE valuations of leading brokerages at historical lows, indicating potential left-side opportunities and a focus on quarterly report catalysts [6]. Summary by Sections Brokerage - The average daily trading volume for stock funds is 30.5 trillion yuan, down 6% week-on-week, with a year-to-date average of 32.8 trillion yuan, up 88% year-on-year. The new establishment scale for stock and mixed funds this week is 19.8 billion yuan, with a total of 152.3 billion yuan established year-to-date, up 71% year-on-year. The popularity of mixed-asset FOF products continues, becoming a key direction for asset allocation in a low-interest-rate environment. The top three brokerages by asset size are CITIC Securities (163.2 billion yuan), Huatai Securities (143.2 billion yuan), and Guotai Junan (120.7 billion yuan) [7]. - The brokerage sector is expected to maintain high prosperity due to the high base of market trading volume and fund issuance. Current valuations and institutional holdings are low, with long-term logic for ROE improvement driven by wealth management, overseas expansion, and investment banking for innovative enterprises. Recommended stocks include Huatai Securities and Guangfa Securities, as well as leading brokerages like Guotai Junan and CITIC Securities [7]. Insurance - In February 2026, the insurance market saw new single premiums reach 69 billion yuan, a year-on-year increase of 6.9%, with a cumulative total of 281.4 billion yuan for January-February, up 21.7% year-on-year. The monthly new single premiums for February saw a decline of 9.7% to 30 billion yuan, but the cumulative period still shows strong growth due to deposit migration, with leading insurance companies expected to outperform the industry average [8]. - The individual insurance channel reported a standard premium of approximately 36.3 billion yuan in January 2026, a year-on-year increase of 36%, with 40 companies showing positive growth. The "old seven" companies achieved a similar growth rate of 36% [8]. - The migration of deposits is driving high growth in the liability side of insurance companies, while the asset side remains stable. The short-term valuation drop due to concerns over AI impacts and geopolitical tensions presents a good opportunity for investment, with expectations for strong quarterly reports. Recommended stocks include China Pacific Insurance, China Life H shares, and Ping An [8]. Recommended Beneficiary Stocks - The recommended stock portfolio includes Huatai Securities, Guotai Junan, China Pacific Insurance, and Tonghuashun; as well as China Life, Ping An, Guangfa Securities, CICC H shares, CITIC Securities, and Guosen Securities [9].