Huatai Securities: Mutual Fund Reform to Support Equity Market Development
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Abstract
Huatai Securities' weekly focus is how mutual fund reform could bolster the equity market. Regulators are optimizing registration arrangements for new floating-fee funds, steering the industry from a scale orientation toward investor returns. A-share average daily turnover reached RMB 1.81 trillion last week, up 18% week over week, signaling a marginal repair in sentiment. The PBOC reaffirmed a market-based RMB exchange-rate formation mechanism, while the Ministry of Finance stressed that proactive fiscal policy will keep intensifying, using interest subsidies and special-purpose bonds to expand domestic demand and stabilize investment. On financials, Huatai views the securities sector as undervalued and underweight—suited to left-side accumulation as turnover recovers and IPO activity repairs—and banks as beneficiaries of fiscal-financial coordination. It remains cautious on insurers ahead of Q3 results given profit volatility, preferring names with stable, attractive dividend yields. Referenced names include CITIC Securities (6030 HK / 600030 CH), CICC (3908 HK), Orient Securities (3958 HK / 600958 CH), Bank of Nanjing (601009 CH), Bank of Ningbo (002142 CH), Chongqing Rural Commercial Bank (601077 CH) and Standard Chartered (2888 HK).
Key exhibits
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