This week (2024.5.19-2024.5.25), the average daily trading volume of A-shares this week was 851.7 billion yuan, an increase of 0.3% month on month and 5.2% year on year. The average turnover from the second quarter of 2024 to today is 902.8 billion yuan, 10.2% less than the average daily turnover in the second quarter of 2023. The average trading volume from 2024 to today is 875.9 billion yuan, an increase of 3% over the average daily trading volume in 2023. Shanghai Hong Kong Stock Connect: This week, the net inflow of northbound capital was 835 million yuan, and since 2024, the total net inflow of northbound capital has been 88.684 billion yuan. The northward net inflow in 2020/2021/2022/2023 is 2089/4322/90/43.7 billion yuan respectively. Two financing: As of May 23, 2024, the balance of two financing in two cities was 1538 billion yuan, a decrease of 0.02% month on month and 4.22% less than the average daily level in 2023 (1605.797 billion yuan). The balance of securities lending in the two cities was 39.28 billion yuan, accounting for about 2.55% of the total.
This week (2024.5.19-2024.5.25), the non bank financial Shenwan Index fell 3.30%, 1.22 percentage points lower than the Shanghai Shenzhen 300 Index, ranking 16th in all primary industries. In terms of segments, securities fell 3.57%, insurance fell 2.52%, diversified finance fell 4.28%, Internet finance fell 4.80%, and financial technology fell 4.45%. Power production financing (+6.38%), Changjiang Securities (+2.86%) and * ST civil control (+0.00%) were among the top performers. Rendong Holdings (- 8.99%), Guosheng Financial Holding (- 8.41%), Jinlong Shares (- 8.07%), Huatie Emergency (- 7.65%), and Guolian Securities (- 7.30%) were among the top decliners.
Securities dealers: the most stringent new regulations on shareholding reduction were released, which helps the market to build a healthy ecosystem
On May 24, the CSRC officially issued the Interim Measures for the Administration of Share Reduction by Shareholders of Listed Companies and the Rules for the Administration of the Shares of the Company Held by Directors, Supervisors and Senior Managers of Listed Companies and Their Changes, which further standardized the share reduction and came into force as of the date of issuance. The Measures for the Administration of Share Reduction make detailed provisions on strictly regulating the reduction of large shareholders' shares and effectively preventing bypass share reduction, which are consistent with the core content and concept of strictly regulating share reduction in the previously issued Opinions of the State Council on Strengthening Supervision and Preventing Risks to Promote the High Quality Development of the Capital Market and Opinions on Strengthening the Supervision of Listed Companies (for trial implementation).
The release of new regulations on share reduction reflects the upgrading of supervision on share reduction of major shareholders and key personnel. In the specific rules, it limits specific shareholding reduction behaviors, strengthens disclosure requirements, clarifies specific punishment measures and circumstances, improves the enforceability of the rules, and helps deter potential violations. The formulation and implementation of the new regulations will help protect the interests of small and medium-sized investors, avoid the adverse impact on stock prices due to the disorderly reduction of large shareholders, and prevent the adverse impact on the development of the company caused by the early reduction of insiders, thus promoting the high-quality development of listed companies and promoting the stable and healthy development of the capital market.
Insurance: the first listed insurance company after the new "National Ninth Article" followed up the "multiple dividends in one year"
On the evening of May 24, Xinhua Insurance announced the resolution of the 21st meeting of the 8th Board of Directors. The announcement said that the Board of Directors of the Company reviewed and passed the Proposal on the Arrangement of 2024 Interim Profit Distribution and agreed to submit the proposal to the General Meeting of Shareholders for deliberation. The announcement shows that, according to relevant laws and regulations and regulatory requirements, Xinhua Life Insurance plans to make arrangements for the distribution of interim profits in 2024: according to the reviewed financial report for the first half of 2024, reasonably consider the current performance, capital status and risk control index requirements, and implement the interim dividend distribution in 2024 on the condition that the company has profits available for distribution in the half year of 2024. The announcement also shows that the proportion of the total mid year dividend to the net profit attributable to the shareholders of the parent company in the half year of 2024 is no more than 30%. When formulating the profit distribution plan for 2024, the distributed medium-term profit distribution factors will be considered. The above proposal has been unanimously approved by the board of directors of Xinhua Insurance. Xinhua Insurance said that the company will formulate a specific plan for 2024 interim profit distribution according to the resolution of the general meeting of shareholders, and implement it after performing the corporate governance procedures in accordance with relevant laws and regulations and the relevant provisions of the Articles of Association.
On April 12 this year, the State Council issued Several Opinions on Strengthening Supervision and Risk Prevention to Promote the High Quality Development of the Capital Market (i.e. the new "National Ninth Article"), proposing to strengthen the supervision of cash dividends of listed companies, enhance the stability, sustainability and predictability of dividends, and promote multiple dividends, pre dividends, and dividends before the Spring Festival in a year. Xinhua Insurance is the first listed insurance institution to disclose and follow up the medium-term dividend since the release of the new "National Ninth Article". It is worth noting that before the release of the new "National Ninth Article", China Ping An's medium-term dividend, which is also a listed insurance company, has been implemented for many years.
The increase in dividend frequency of listed insurance companies is a positive signal from the perspective of the market and investors. On the one hand, more frequent dividends can improve the efficiency of capital use, which increases the attractiveness of investment for investors seeking stable cash flow returns. On the other hand, this approach can also enhance the market's confidence in the profitability and financial health of insurance companies, because it means that insurance companies have enough profits and cash flows to support multiple distributions.
Risk warning
The policy effect is less than expected; Macroeconomic downside risk; Sharp fluctuations in the capital market; Natural disaster risk.
