Specifically, on Friday, 104 big financial concept stocks rose to varying degrees, 22 stocks rose more than 2%, Ruida futures rose and stopped, Nanhua futures and Huachuang Yangan rose more than 7%, respectively, 7.64% and 7.58%. In addition, China Food Capital (5.46%), CITIC Construction Investment (4.52%), Pudong Development Bank (4.10%), Qingdao Bank (3.74%) and Nanfang Bank (4.52%). Beijing Bank (3.57%), Ping An Bank (3.51%), Hatou Stock (3.45%), Merchants Bank (3.36%), Haitong Securities (3.24%) and Guosheng Golden Control (3.05%) all rose by more than 3%.
It can be seen that the reform process of Chinas capital market will bring great opportunities to the securities industry; the monthly report of securities firms predicts that Septembers operating data is slightly better than Augusts; the market-to-market ratio of the plate is still at a historic low level, which has become the three important factors for the major securities firms to recommend the active allocation of securities stocks.
Shanxi Securities believes that the securities industry is facing a comprehensive transformation, and the profit model will also undergo tremendous changes. It will strive to create core advantages, move towards specialization, become bigger and stronger. At the same time, it will be affected by the increasing downward pressure of global finance, and its liquidity is loose. It has also opened a directional reduction in China, which will help the market to further recover. There are trading opportunities in the securities industry.
In terms of performance, the China Securities Association recently issued a briefing on financial operation of securities companies in August 2019 to various securities companies, which showed that in August, 131 securities companies achieved operating revenue of 26.771 billion yuan, down 1.48% month on month, up 98.28% year on year; net profit of 9.539 billion yuan, up 7.31% month on month, up 492.64% year on year. In the same month, 105 securities companies realized profits, and 47 securities companies realized a month on month growth in net profits or turned losses into profits. Pacific Securities pointed out that the September earnings announcement of securities firms is imminent, expected to improve the ring ratio, the plate 1.61 times the net market rate is still at a historic low, it is recommended to allocate on the left.
In this context, the third quarter securities business performance is expected to recover substantially as a consensus. Tianfeng Securities also said that there was still room for improvement in the securities industry policy in the fourth quarter, which had a positive impact on valuation. At the same time, the brokerage also pointed out that insurance stocks also ushered in an upward opportunity. In October, the focus of insurance stocks shifted to the three-quarter report and next years opening bonus. It is expected that the performance of listed companies will be stable in the third quarter, and the overall performance of the opening bonus in 2020 will improve year on year (mainly due to the attractiveness of savings-based products and the advance of the opening bonus time, etc.). At the same time, the fourth quarter of insurance stocks may open a valuation switching market.
As of Fridays close, the latest P/E ratios of Ping An, Xinhua Insurance and Taibao were less than 13 times, 11.18 times, 12.36 times and 12.74 times, respectively, according to Tonghuashun data.
Citic Securities pointed out that the banks three-quarter earnings are expected to continue its robust performance. At present, bank stocks are characterized by low valuation, low institutional positions and high ROE, and low valuation is the most important factor in investment.
Source: Liable Editor of Securities Daily: Yang Qian_NF4425