Hong Kong shares of Chinese securities companies continued to go high, Guolian securities rose 12.04%, Guotai Junan rose nearly 5%, GF Securities rose more than 3%, Huatai Securities rose more than 2%.
In the process of reporters writing, securities companies continued to pull up. As of the press release, CITIC Securities rose 7.78% in the intraday trading, with a total market value of 400.3 billion yuan, up 29.45% since it was launched on June 30; CITIC construction investment rose 8.43% with a total market value of 395.7 billion yuan. It started the market ahead of schedule on June 19, with an increase of 53.8% in 10 trading days.
Central Huijin and CITIC Group, the major shareholders of two securities companies, refuted rumors twice
On July 2, it was reported in the media that CITIC Group, the parent company of CITIC limited, the largest shareholder of CITIC Securities, would purchase its equity of CSCI from Huijin to promote the merger of the two securities companies, and the plan has been approved by the party committees of the two securities companies.
That night, both China Securities and China securities issued a Clarification Announcement, saying that the company had not held a party committee to examine and approve the relevant plans mentioned above, and there was no information that should be disclosed but not disclosed.
On July 3, the Shanghai Stock Exchange issued a regulatory working letter on the matter to CITIC Securities and China Securities construction investment. The main concern was whether CITIC Securities and China construction investment separately consulted the major shareholders on the reported matters.
On the evening of July 5, CSCI replied to the Shanghai Stock Exchange on this matter, and the Central Huijin replied in writing to CSCI that as far as the inquiry items in the letter are concerned, our company has no material information that should be disclosed but not disclosed by your company.
Almost at the same time, CITIC Securities issued an announcement in response to the questions raised by the Shanghai Stock Exchange. CITIC Securities Co., Ltd., the largest shareholder of the company, confirmed with CITIC Group that up to now, CITIC Group has not discussed any plan for the reorganization and merger of CITIC Securities and China CITIC construction investment, and CITIC Group has not signed any agreement with Central Huijin Investment Co., Ltd. concerning the acquisition of shares of CSCI.
CITIC Securities said that the company immediately verified with CITIC limited, the companys largest shareholder, after noticing the relevant media reports on the relevant matters on July 2, and obtained the oral verification results, so it issued a Clarification Announcement in time. After receiving the Shanghai Stock Exchanges inquiry letter, he asked CITIC limited in writing about the above-mentioned media reports and received a written reply.
Institutions look at more securities companies
Guotai Junan non bank financial team believes that the main reason for this round of market is top-down rather than bottom-up. The core logic is that the risk-free interest rate of the stock market is lower than expected, and the main trigger factor is the downward trend of the risk-free interest rate of the stock market caused by the upward rise of the Treasury bond yield after the net value of financial products. As the economy and treasury bond yields rise more than expected, the risk-free interest rate of the stock market will further decline. As an undervalued sector with strong correlation between fundamentals and the market, securities companies directly benefit from the downward trend of risk-free interest rates.
According to the team of Zuo Xinran of Founder non bank, since 2020, the reform of the registration system of GEM has officially opened. Under the registration system, securities companies have returned to the source of capital intermediary. The head brokers have more advantages in the efficiency of capital flow allocation, the creation of innovative financing products, pricing rights, diversification of institutional services, gem and sci-tech innovation board project reserves, and actively build Chinas aircraft carrier level securities companies in the current supervision u201dFrom the consolidation and classification supervision, we have supported the head securities companies to expand their asset scale. At present, except for citic securities, CITIC construction investment and China Merchants Securities, the rest of the top securities companies are in the 0-20% quantile range of historical valuation, with long-term investment value.
According to the non bank team of China Merchants, competitive supply side reform stimulates development, and policy landing + news stimulation opens up imagination space; introducing competitiveness is an important idea of this round of reform policy, which will promote intermediary agencies to achieve rapid development in system, efficiency, consciousness and other aspects, and the policy dividend of deep reform has entered a climax period; the biggest difference of the launch of this round of market is the frequent policy side Landing and news continuously stimulate the imagination of the securities industry. Considering the policy intention to accelerate the integrated development of securities industry from top to bottom, the valuation of securities companies is expected to continue to rise.
Since the beginning of the year, the growth enterprise market has soared by 35%, and the growth rate of medical consumption TMT has been significantly ahead. In contrast, the performance of securities companies has lagged behind since the beginning of the year. Before the start of this round of market, it has dropped 8% compared with the beginning of the year, showing the characteristics of stagflation. As beta plate, insurance is abnormal, ranking the top of the decline list. The valuation and industry allocation of the non banking sector are at a historical low, which is in sharp contrast to the current situation that the capital market is in full swing and liquidity is abundant. Combined with the current high market sentiment and bull market expectations, the non silver plate made up strong momentum.
Source of this article: Yang Bin, editor in charge of CFA_ NF4368