Viewpoints and conclusions: for the financial enterprise cycle, debt expansion but asset contraction in 2023 is undoubtedly a stressful business environment. On the one hand, we can see that under the time difference of deposit interest rate transmission, the scale of life insurance liabilities continues to grow, securities firms leverage forward-looking expansion, on the other hand, the decline in the prices of underlying assets such as equity market and real estate is immediately transmitted to the statements of non-bank enterprises. However, from an investment point of view, we believe that the market is highly forward-looking and effective, and the current valuation has fully reflected the market's concerns about the industry's short-term operating environment, regulatory adjustment and long-term operating trends, and the position of public offering funds at the end of 24Q1 has dropped to a very low level. However, it is optimistic that the supply-side reform of the industry at the macro level is significantly beneficial to the head listed companies, while at the micro level, the debt end of 2024Q1 life insurance continues to be strong, and the rate of return on investment goes out of the haze area. in the same period, although the profits of securities firms are under pressure, the operating leverage has shifted downwards, the nine principles and supporting policies of the capital market countries have paved the way for a healthier business environment, and structural opportunities also exist under the acceleration of mergers and acquisitions and the optimization of risk control indicators. Insurance summary and prospect: 23A and 24Q1 listed insurance companies NBV total + 7.Sonicarcadegame.2% and + 14Sonicarcadegame.8%, if the comparable growth rate is nearly 30%, the average rate of return on total investment is 2.5% and 4.3% respectively.SonicarcadegameLooking forward to the follow-up, the decline of agents will gradually converge and stabilize, the regulatory statement will safeguard the bottom line risk of the equity market, it is expected that the debt and asset ends of listed insurance companies will rise, and the growth rate of Q2 liabilities may decline, considering that the base may affect the growth rate of Q2 liabilities. However, the improvement trend of the annual dimension can still be expected, taking into account the stability of the liability side and the flexibility of the investment side, focusing on China Life Insurance and China Life Insurance. Summary and prospect of securities firms: the total net profit of 23A and 24Q1 listed securities firms is + 0.5% and-30.9% respectively, of which the proprietary business is + 62.5% and-33.5% respectively.SonicarcadegameHis business line is generally on a downward trend. The total ROE of 23A and 24Q1 listed securities firms is 4.71% and 0.98% respectively, which is + 0.35pct and-0.72pct respectively compared with the same period last year. After excluding margin, the leverage is 3.34% and 3.23%, + 2.8% and-5.0% respectively. Looking forward to the follow-up, the suspension of investment banking, derivatives and other innovative businesses is not normal, while the head brokerage has significant profit resilience in a weak market and is also sensitive when the regulatory environment turns. China Galaxy, Huatai Securities and CITIC Securities are recommended. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.