The Zhitong Finance App learned that CITIC Construction Investment released a research report stating that the securities sector has medium- to long-term allocation value, and it is recommended to focus on three main lines. The full life cycle supervision of property insurance companies has been further strengthened to help optimize the competitive environment in the industry, and the Matthew effect in the industry is expected to be further highlighted. Hong Kong stocks and non-banks report positive performance and undervaluation. Under a tight balance pattern, improvements in fundamentals resonate or have structural opportunities for valuation restoration. In terms of diversified finance, the release of policy dividends resonates with the realisation of technological dividends. It is recommended to stick closely to the main line of “undervaluation+high dividend+high growth”.
CITIC Construction Investment's main views are as follows:
Securities: The securities sector has medium- to long-term allocation value. It is recommended to focus on three main lines
The month-on-month recovery in post-holiday turnover was mainly due to the calendar effect of capital return, but the year-on-year trend was still declining, and the return of capital was more reflected in stock position adjustments. The overall market is still shrinking and consolidating. The balance of the two loans is at a historically high level, but the level of leverage is basically in line with market capitalization expansion. The risk of systemic leverage is manageable, and market risk appetite is still in the repair channel. The pace of equity financing is steady, and resources continue to lean towards new quality productivity areas. Currently, sector valuations are at a historically relatively low level, and there is a certain margin of safety. It is recommended to focus on the differentiated competitiveness of technology investment banks, leading brokerage firms in the big wealth business, and leading brokerage firms that are fintech targets and drive the upward trend in international growth.
Insurance: The full life cycle supervision of property insurance companies has been further strengthened to help optimize the competitive environment in the industry. The Matthew effect in the industry is expected to be further highlighted
On October 9, the General Administration of Financial Supervision issued the “Regulations on the Administration of Insurance Product Development for Property Insurance Companies” (hereinafter referred to as the “Regulations”). In recent years, with the rapid development of China's property insurance market, the coverage of insurance products has continued to expand, and coverage has continued to be rich, but there are also problems such as additional insurance products accounting for a high proportion of additional insurance products but lack of detailed rules, industry model clauses and pure risk loss rates that need to be strengthened, and the company's product evaluation, revision, and cancellation standards need to be further refined.
On the one hand, the “Regulations” regulate the development and management of additional insurance, and list specific situations where development is prohibited. The purpose is to guide the industry back to the original purpose of additional insurance development, ensure clear product structures, clear responsibilities, and prevent conflicting terms, claims disputes, or business compliance risks. Furthermore, the “Regulations” make it clear that for industry model clauses or benchmark pure risk loss rates, companies should in principle use them, and unused companies must explain the reasons and differences in a feasibility report or actuarial report, so that while respecting the company's differentiated business path, the effectiveness of the use of model clauses and pure risk loss rates is strengthened through detailed requirements to promote product quality improvement in the entire industry.
Risk warning: Uncertainty of market price fluctuations, uncertainty in corporate profit forecasting, technological updates and iterations.