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Financial industry weekly report (22nd week): policies continue to work and wait for recovery after the epidemic

Category: Industry Organization: Huatai securities company limited researcher: Shen Juan/Li Jian/Wang Ke Date: June 5, 2022

Viewpoint of this week: policy should continue to work and wait for recovery after the epidemic

    The regulatory authorities are confident of stable growth, the post epidemic recovery is expected, and they are optimistic about the opportunities for bank allocation. The reform of the capital market will also be promoted step by step, focusing on the opportunities for securities dealers after the improvement of market risk appetite. It is suggested that investors pay attention to leading insurance companies with relatively stable fundamentals.

    Sub industry perspective

    1) Bank: The State Council has issued a package of policies and measures to stabilize the economy, and has strong confidence in stabilizing growth. We expect the People's Bank of China will continue to strengthen the implementation of the prudent monetary policy, the credit demand is expected to marginal repair, the recovery of the market after the epidemic is expected, and seize the opportunity of high-quality bank allocation. 2) Securities: Since May, the scene tolerance and risk appetite of the capital market have continued to fluctuate and weaken, but the policy side is expected to continue to work. The central bank will increase the implementation of the prudent monetary policy, and liquidity is expected to remain loose. The reform of the capital market will also be promoted step by step, focusing on the opportunities for securities dealers after the market risk is improved. 3) Insurance: investor sentiment seems to have recovered, but the sustainability is still uncertain. We suggest that investors focus on leading companies with relatively stable fundamentals.

    Key companies and developments

    1) Bank: recommend high-quality small and medium-sized banks, such as Bank of Chengdu, Bank of Ningbo, etc. 2) Securities: recommend leading securities companies, such as CITIC Securities (AH); Potential target of characteristic securities companies. 3) Insurance: recommend high-quality industry leaders.

    Risk tip: The duration of economic downturn exceeded expectations, and asset quality deteriorated beyond expectations.

Data recommendation