Guotai Haitong: Real estate has limited impact on listed insurance companies, non-financial sectors are ready to take off.

Guotai Haitong's research report states that the impact of real estate on the asset side of insurance companies is limited; however, there are increasing signs indicating a bottoming out and recovery on the liability side, with a strong start to 2026 expected to exceed expectations. The bank believes that there is room for fundamental improvement in the non-bank sector as a whole and continues to see investment opportunities in the non-bank sector, especially those benefiting from the entry of resident funds into the market. Guotai Haitong's main points are as follows: Non-bank sector view for the week This week, the market's focus on the asset side of insurance companies involved in real estate has increased. Based on historical data and discussions, the bank believes that the proportion of real estate assets among listed insurance companies has significantly decreased, and the quality of assets has improved compared to before. Therefore, the bank believes that the impact of real estate on the asset side of insurance companies is limited; whereas, on the liability side, there are increasing signs indicating a bottoming out and recovery, with a strong start in 2026 expected to exceed expectations. At the same time, the bank believes that with ongoing reforms in the capital market investment side and the prospect of resident funds entering the market, there is room for fundamental improvement in the non-bank sector. The bank continues to be optimistic about investment opportunities in the non-bank sector, especially for varieties benefiting from resident funds entering the market. Important data for the week Brokerage business: The average daily turnover of stock funds this week was 1793.9 billion yuan (compared to 2038 billion yuan previously); as of the end of this week, the average daily turnover of stock funds in 2025 was 1932.6 billion yuan, with a year-on-year change of 63.33%. Investment banking business: As of November 28, 2025, the scale of IPO and refinancing underwriting was 952.6 billion yuan; as of November 28, 2025, the financing scale of corporate bonds, corporate bonds, and convertible bonds was 19.7 billion yuan, 4833.4 billion yuan, and 56.4 billion yuan respectively. Margin trading: As of November 27, 2025, the balance of margin trading was 247.2 billion yuan (246.15 billion yuan on November 21, 2025), with margin financing balance at 245.5 billion yuan and margin trading balance at 17 billion yuan. Currently, the margin trading balance accounts for 2.54% of the A-share float market value. Equity pledge: As of November 28, 2025, the cumulative new reference market value of pledged stocks for the year reached 522.4 billion yuan, with securities firms' reference market value of pledged stocks at 116.2 billion yuan, accounting for 22.25%; in terms of existing amount, the total market value of unresolved equity pledge business stocks (reference market value) reached 498.5 billion yuan, with securities firms' unresolved equity pledge stocks' total market value at 122 billion yuan, accounting for 24.47%. Insurance data: Insurance industry data for September 2025: 1) From January to September 2025, the cumulative premium income of the insurance industry was 5.2146 trillion yuan, a year-on-year increase of 8.8%. The cumulative original premium income of the life insurance industry from January to September was 3.8434 trillion yuan, a year-on-year increase of 10.2%, while the cumulative original premium income of property insurance was 1.3712 trillion yuan, a year-on-year increase of 4.9%. 2) Total assets were 39.59 trillion yuan, with a growth rate of 10.27% compared to the beginning of the year, and net assets were 3.84 trillion yuan, with a growth rate of 15.45% compared to the beginning of the year.