Insurance and securities sectors jointly rally, Guoxin Securities, Xinhua Insurance, and others advance.

Insurance and brokerage sectors jointly surged during trading on the 17th. As of the latest report, Guosen Securities rose nearly 6%, New China Insurance increased nearly 4%, while Huatai Securities, CITIC Securities, East Money, Ping An Insurance, and others gained about 3%.

Institutions state, “During the 14th Five-Year Plan period, the development environment for non-bank financial institutions in China is expected to continue improving, with a solid foundation for risk prevention being established. The securities industry focuses on improving comprehensive risk management systems and addressing internal control weaknesses. The insurance industry emphasizes risk regulation to steadily advance risk management. Non-bank financial institutions aim for high-quality development through risk control. Meanwhile, asset quality pressures on non-bank financial institutions are expected to gradually ease as the orderly resolution of real estate and local government debt risks progresses, further reducing risk exposure and optimizing asset-liability structures. Additionally, the reduction and quality enhancement of small and medium-sized financial institutions will be promoted in depth, guiding securities, insurance, and other non-bank institutions to focus on their core businesses and develop in a differentiated manner, continuously improving overall operational resilience.”

Guojin Securities pointed out that the “14th Five-Year Plan” outline was recently released. Compared to the “Recommendations” published in October 2025, the core themes remain unchanged: enhancing the inclusiveness and adaptability of the capital market system, actively developing equity financing, steadily developing futures and derivatives, and steadily advancing digital renminbi. New emphasis has been added on “adhering to risk prevention, strengthening regulation, and promoting high-quality development,” as well as “supporting large state-owned financial institutions to improve comprehensive service levels, strictly regulating access standards and supervision for small and medium-sized financial institutions, and cultivating top-tier investment banks and investment firms,” reflecting a focus on supporting excellence and limiting inferior institutions, and fostering the development of strong, internationally competitive financial institutions. Under the backdrop of risk prevention and strict regulation, as the capital market shifts from quantity expansion to quality improvement, the gap between leading and smaller brokerages may widen, with top-tier firms expected to gain more market share through competition. Currently, the sector’s PB valuation is at the 25th percentile over the past decade, suggesting attention to opportunities on the left side of the valuation curve.

Regarding the insurance sector, the institution believes that short-term liquidity disruptions do not alter the overall positive trend of the medium- and long-term fundamentals through 2026. With deposit shifting and market share gains, listed companies’ liabilities remain highly prosperous, and investments benefit from market rallies and stable long-term bond yields. Valuations are now at lows, and as market styles shift toward recovery, clearer expectations for insurance sector Q1 earnings will lead to valuation rebounds.