The Zhitong Finance App learned that CITIC Construction Investment released a research report saying that the policy content of this year's Financial Street Forum is high, and for the securities industry, the direction of improving the financial environment and expanding products is clear. The main investment line in the insurance sector is expected to gradually switch to investment opportunities based on medium- to long-term value valuation repair and high dividend allocation. Hong Kong stocks and non-banks are undervalued, and there are structural opportunities for improving fundamentals and repairing valuations under a tight balance pattern. 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 policy content of this year's Financial Street Forum is high. For the securities industry, the direction of improving the capital environment and expanding product capacity is clear
The main leaders of the “One Bank, One Bureau, One Meeting” of this year's forum all spoke out. The policy revolved around the three main lines of interest rate regulation framework, capital market reform, and financial opening, and was launched in the form of a list of policies that can be implemented: the central bank announced that it would cultivate overnight repurchase interest rates as the main policy interest rate, establish a liquidity support tool for non-bank institutions, and launch an overnight reverse repurchase operation the next day; the Securities Regulatory Commission agreed to register the first batch of 18 active ETFs and launch a package arrangement such as the Beijing Stock Exchange 50ETF and the Beijing Stock Exchange market value placement, monetary policy supervision and policy coordination Same-sex people have increased, and framework reforms are faster than total easing. As far as the industry is concerned, active ETF expansion has brought new product space to asset management and consignment business. Beijing Stock Exchange reforms have increased trading activity, and the compliance and system first-mover advantages of leading brokerage firms are expected to be reflected. This week (October 19 to October 23), the average daily turnover of the A-share market was 1575.419 billion yuan, down 12.35% from -0.05% month-on-month before the holiday season.
Insurance: The main investment line in the insurance sector is expected to gradually switch to investment opportunities based on medium- to long-term value valuation repair and high dividend allocation
Strong demand for residents' savings insurance+favorable “anti-domestic” policies in the industry+channel side's efforts to expand incremental+dividend insurance transformation resonates with the quadruple benefits of excellent quality. It is clear that listed insurers are basically facing a positive trend over the long term. If the subsequent increase in macroeconomic policies exceeds expectations, it is expected to be a catalyst for sector valuation repair. Currently, sector valuations are in the lower historical quantile, and the margin of safety is sufficient. By the close of 10/23, China Life Insurance, Ping An, Taibao, and Xinhua PEVs were at 0.62/0.59/0.42/0.52x, in the 14/34/8/ 37% fraction in the past 3 years, and in the 14/32/15/ 59% quantile in the past 5 years. Market pricing excessively reflects potential performance growth pressure and low interest rate environmental pressure brought about by a high base. Overall, the insurance sector's medium- to long-term allocation value is prominent in its current position. If the potential pressure of the growth rate of performance under a high base causes short-term disturbances to stock prices, it is recommended to seize the opportunity to take advantage of a low layout and be optimistic about valuation restoration based on medium- to long-term value and high dividend allocation investment opportunities.
Risk warning: Uncertainty of market price fluctuations, uncertainty in corporate profit forecasting, technological updates and iterations.