China Merchants Fund Li Zhan: Optimistic about the repair of the divergence between the valuation of the securities sector and the fundamentals

Today's brokerage index rose 6.81%, and eight brokers rose and stopped. The brokerage sector has performed strongly this month, but the year-to-date rise and fall is still -6.09% below the market. Li Zhan, chief economist of the research department of China Merchants Fund, said that the current prosperity of the capital market has remained at a historically high level, and the valuation of the sector is only 1.7 times, which is at the historical 54.43% quantile. We continue to be optimistic about the continuous repair of the divergence between the valuation and fundamentals of the brokerage sector, especially the targets with high correlation with wealth management and asset management logic.

"The market's attention to the wealth management market has further increased." Li Zhan said that with the gradual growth of residents' wealth at the same time, the structure of residents' large-scale asset allocation has also undergone some trend changes, for example, in the past, investment real estate with a high proportion of residents' overall allocation is expected to further decline in the future after the concept of "housing and not speculation" has gradually become popular, and part of the space can also be freed up to bank securities asset management products; in addition, after the new regulations on asset management, the breaking of some wealth management products just to meet expectations will also help residents to accept more products with greater volatility but higher compound yields. In this process, how to reallocate assets becomes an important issue, and wealth management institutions can help residents as investment advisors. Therefore, the transformation of brokerage wealth management to better further catalyze the plate market. At the policy level, support has been increased, including supporting high-quality asset management institutions to apply for public offering licenses, buyer investment advisors to accelerate the expansion of capacity and other policies to continue to help, on the other hand, the scale of securities companies and market share have increased, showing the transformation results.

This article originated from the Financial Circle Network