Yaoai Securities Finance surges over 80% during trading! Major finance stocks rally collectively

Major financial sectors such as securities firms and insurance companies collectively strengthen.

On the morning of March 17, driven by the major financial sector, the main A-share indices temporarily rebounded and surged during the trading session. However, they later fluctuated and declined. By midday, the Shanghai Composite Index fell 0.04%, the Shenzhen Component Index dropped 0.40%, the ChiNext Index declined 0.58%, and the STAR Market Index decreased 0.72%.

Market overview shows that insurance, diversified finance, securities firms, and banks performed relatively strongly in the early trading hours. Photovoltaics, steel, and precious metals rebounded somewhat, while electronics, petrochemicals, communication equipment, batteries, and coal sectors experienced significant declines.

During the early hours of Hong Kong stocks trading, financial stocks also performed strongly, with YoY Securities Financial surging over 80% intraday. On the evening of March 16, YoY Securities Financial announced that the tender offer initiated by Ant Group had been approved by relevant Chinese authorities, with settlement expected to be completed by March 30.

HALO Assets Continue to Attract Capital Attention

Since March, A-share sector rotation has accelerated, with technology growth maintaining high-level oscillations. HALO assets (companies characterized by heavy assets and low淘汰率) continue to attract capital.

Recently, sectors such as utilities, transportation, food and beverages, and banking have performed relatively strongly. Several stocks in the utilities sector, including China Huadian Liaoning Energy, Zhaoxin Shares, Xineng Technology, and Jiangsu New Energy, hit the daily limit.

In the food and beverage industry, stocks like Qianhe Food, Lotus Holdings, and Yangyuan Beverage saw significant gains.

Essentially, HALO represents a one-time survival premium revaluation of low substitution risk assets. CITIC Securities believes that HALO is not equivalent to structural winners. Purely defensive allocations based on survival certainty cannot form a long-term mainline. Assets with sustainable excess return potential should be located at critical nodes of AI expansion, deeply linked to resource bottlenecks or technological upgrades, and exhibit profit elasticity. Therefore, HALO trading mainly reflects phase-based style rotation rather than a new long-term growth paradigm. When AI has no clear new direction, HALO is worth关注; once AI expansion becomes clear, capital will re-embrace high growth.

CICC states that current valuation repair opportunities in typical HALO sectors are worth关注, and medium- to long-term growth sectors still have relative优势. In sectors where AI is difficult to replace, such as utilities, transportation, basic chemicals, and non-ferrous metals, valuations are at relatively low levels over the past decade. After recent rebounds, trading activity remains relatively healthy. Some upstream resource commodities are supported by multiple factors, including HALO trading themes, supply-demand optimization, price increases, and geopolitical environment, which may support market performance. In contrast, the valuation and turnover rates in the hard technology segments of the AI industry chain remain high, but in the medium to long term, they have profit elasticity driven by improved prosperity. As AI industry develops further and gradually enters the application phase,布局 can focus on infrastructure layers like computing power, semiconductors, and cloud computing, as well as application layers such as robotics and智能驾驶.

Ant Group’s Tender Offer Approved, YoY Securities Financial Surges

Major financial sectors surged collectively during the session, with the securities sector index once rising about 3%. Leading stocks included Guosen Securities, GF Securities, New China Insurance, and Ping An of China.

YoY Securities Financial opened sharply higher today, surging over 80% at one point. By midday, the stock was still up 65.91%.

On the evening of March 16, YoY Securities Financial announced that the tender offer initiated by Ant Group had been approved by relevant authorities, with settlement expected to be completed by March 30.

YoY Securities stated that as part of the acquisition by Ant Group, all transaction conditions have been met. The announcement mentioned that the company’s stock was briefly suspended on the 16th and will resume trading starting March 17.

YoY Securities is a leading local Hong Kong brokerage founded in 1995. Its business scope includes Hong Kong stock trading, margin financing, securities custody and agency services, futures and options trading, leveraged forex trading, and spot gold and silver trading. YoY holds licenses No. 1, 2, 3, 4, 5, 7, and 9 issued by the Hong Kong Securities and Futures Commission, covering securities, futures, forex, and asset management. As of September 30, 2024, Chairman Ye Maolin and his controlled company Xin Changming Holdings jointly hold 51.14% of YoY Securities.

Donghai Securities Research Institute noted that the connection of over 150 asset management institutions and rich financial products on the Ant Wealth platform can complement YoY Securities’ stock trading, asset management, and derivatives businesses. Coupled with Ant Group’s over one billion user base, this is expected to further increase market share and gradually build a wealth management ecosystem with deep customer resource mining and a diversified product matrix.

Proofread: Li Lingfeng