CMB Securities: Significant Recovery in Q2 Public Offering Insurance Holdings Brokerage Holdings Still Severely Underallocated
CICC released a research report stating that although the potential impact of trade frictions poses a serious challenge to exports, domestic fiscal stimuli are expected to counteract potential economic downturn pressures. Since April 7, the comprehensive supportive policies of the authorities towards the capital market have effectively eased market risks, boosting a positive investment atmosphere. Considering that most stocks are at relatively low levels with sufficient liquidity, the vitality of the capital market is expected to continue improving, and the prosperity and profitability of securities firms may see sustained improvement. In the insurance sector, with orderly reductions in benchmark interest rates, the NBV of insurance liabilities is expected to continue to grow at a double-digit rate, and the comprehensive liability cost ratio is steadily decreasing, mitigating interest rate risks. As the A-share market continues to improve, long-term investment returns are expected to stabilize and improve, and the potential investment value of insurance is expected to continue to rise.
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