Market review: This week (4.7-4.11), the securities sector continued to decline, falling 5.37% in a single week, outperforming the CSI 300 Index by 2.50 percentage points; From the perspective of sector comparison, the securities sector underperformed 20 first-class industries, and the overall performance was weak. In terms of individual stocks, A-share listed brokerages all fell this week, with Dongxing Securities (-10.38%), Huaxi Securities (-9.60%), Oriental Wealth (-8.33%), Tianfeng Securities (-7.40%) and Shanxi Securities (-7.25%).

This week, the average daily turnover of A-shares was 1.61 trillion yuan, and the balance of the two financial institutions shrank by nearly 5% This week (4.7-4.11), the average turnover of A1 shares was 1.61 trillion yuan, up 41.83% month-on-month and 14.34% from the beginning of the year.

In terms of turnover rate, the average turnover rate of A-shares this week was 3.59%, an increase of 0.35pct month-on-month, and in terms of the balance of the two financial institutions, the average balance of A-shares this week was 1.82 trillion yuan, down 4.78% month-on-month and 2.36% lower than the beginning of the year; Among them, the financing balance was 1.81 trillion yuan, and the balance of securities lending and borrowing was 10.999 billion yuan. This week, A-shares ushered in 3 listed companies, with an equity raising amount of more than 9.6 billion yuan, and this week (4.7-4.11), the A-share market achieved equity financing of 9.609 billion yuan. In terms of IPOs, a total of 3 companies were listed in the A-share market: China Nerin (603257.SH) was listed on the main board, raising 616 million yuan, and Taihong Wanli (603210.SH) was listed on the main board, raising 732 million yuan; Tahoe Co., Ltd. (301665. SZ) was listed on the Growth Enterprise Market (GEM) and raised 462 million yuan. In terms of refinancing, Rongtai shares (605133. SH) and Feng 4 Thermal Electronics (000561.SZ) completed private placements, raising 878 million yuan and 897 million yuan respectively, and Haohan Shen Е (688292.SH), E Bang E (603801.SH) fZ Wei Lithium Energy (300014.SZ) issued convertible bonds, raising 354 million yuan, 670 million yuan and 5 billion yuan respectively.

41 new funds were issued this week, mainly index funds, and a total of 41 1 new funds were issued in the market this week (4.7-4.11), including 25 equity funds, 11 bond funds, 4 mixed funds, and 1 FOF fund. Equity funds are all index funds, including 15 passive index funds and 10 enhanced index funds; Among the bond funds, there are 5 medium and long-term pure bond funds, 3 indexed bond funds, 2 hybrid bond funds, and 1 short-term pure bond fund.

Investment suggestions: We believe that the country's policy goals of "stabilizing growth, stabilizing the stock market" and "boosting the capital market" will continue to set the tone for the future direction of the sector, and many factors such as the continuation of the moderately loose liquidity environment, the continuous optimization of the capital market environment, and the reshaping of investor confidence will jointly promote the upward trend of the securities sector, and the medium and long-term capital expansion is expected to further enhance the fundamentals to improve the expectations. As of April 11, 2025, the PB valuation of the securities sector is 1.33x, which is at the 19.6% quantile since 2010, and still has a high margin of safety.

Risk warning: the risk that the macro economy is less than expected; the risk that capital market reforms fall short of expectations; capital, risk of market volatility.