The Zhitong Finance App learned that Guotai Junan released a research report saying that the non-banking sector is still under-balanced. The brokerage side suggests increasing holdings of leading brokerage firms with competitive advantages in various investment-side services and targets related to mergers and acquisitions (H); the insurance side suggests that the risk of “interest loss” will be reduced (H) due to the central bank's expectations of stabilizing treasury bond yields and the expectation that regulations guide the industry to reduce debt-side costs (H); in terms of diversification of finance, it is recommended to focus on increasing holdings in leading non-bank institutions with strong profit stability.

Guotai Junan's views are as follows:

Under market adjustments, public equity holdings were reduced in the brokerage sector: The overall Wind A index fell by 2.85% in the first quarter. Under market adjustments, the brokerage sector's holdings were slightly reduced. The share of public fund holdings fell from 2.94% to 2.60%, and the sector owed 0.74 Pct (0.61 Pct in 2023Q4). In terms of individual stocks, overallocated stocks include Oriental Wealth, CITIC Securities, Huatai Securities, etc. Oriental Wealth is still the individual stock with the highest overallocation ratio. The allocation was slightly reduced in the fourth quarter, and the overallocation ratio fell from 0.54% to 0.52%. The allocation of CITIC Securities and Huatai Securities was reduced. The overallocation ratio of CITIC Securities fell from 0.40% to 0.35%, and the overallocation ratio of Huatai Securities fell from 0.13% to 0.10%. Recently, the new “National Nine Rules” were introduced. Leading brokerage firms have added an extension development model to enhance specialized service capabilities, accelerate the construction of first-class investment banks, and recommend leading brokerage firms with competitive advantages in investment-side services and mergers, acquisitions and restructuring related targets.

The allocation ratio of the insurance sector has increased, and the investment side is still the core influencing factor of the insurance sector: the insurance index rose 0.42% in the first quarter, and the insurance sector allocation ratio rose from 1.18% to 1.39%. The increase in share is expected to be related to the market style, and the sector still lacks 0.74 Pct. In terms of individual stocks, the market value ratio of China Ping An's holdings increased from 0.93% to 1.22%; the market value ratio of China Life Insurance's holdings remained 0.04%, still falling short of 0.83%; China's Taihan holding market value ratio fell from 0.17% to 0.11%, still lacking 0.12%. The core influencing factor of the insurance sector was on the investment side.

The allocation ratio of the diversified financial sector increased slightly, and the allocation of high-dividend assets was increased again: the diversified finance index fell by 2.65% in the first quarter. The public fund holding ratio was 0.0208%, up 0.0047Pct from month to month. The increase in high-dividend assets was the main reason for the increase. The sector still remained underpaid, with an underallocation ratio of 0.45%. In terms of individual stocks, Jiangsu Golden Rental is the individual stock with the highest holding ratio and was further increased. The market value ratio of positions increased from 0.0088% to 0.0182%. However, at present, the fund's holding ratio with Jiangsu Golden Rental is still low, with an outstanding balance ratio of 0.012%.

Risk warning: The equity market fluctuates greatly; the allocation of residents' equity assets falls short of expectations; the recovery on the life insurance debt side falls short of expectations.