China Galaxy Securities: 2026 Government Report Policy Signals Are Positive, Non-Banking Sector's Long-Term Value Highlights

CNFinance App has learned that China Galaxy Securities issued a research report stating that the government work report is based on the successful conclusion of the 14th Five-Year Plan and the start of the 15th Five-Year Plan. It focuses on high-quality development, risk mitigation, reform and opening up, and people’s livelihood protection. The report makes clear deployments in areas such as the capital market, financial technology, green finance, pension finance, and inclusive finance. It defines a clear development path for non-bank financial institutions and presents overall policy directions to stabilize the market, manage expectations, resolve risks, expand long-term funds, and strengthen services to the real economy. The operational foundation of industries like securities and insurance is expected to be further solidified.

Event: On March 5th, the Fourth Session of the 14th National People’s Congress opened in Beijing. Premier Li Qiang delivered the government work report, systematically deploying work for the financial system and capital markets through 2026. The policy directions are clear and the efforts are intensified, bringing definite positive signals to non-bank financial sectors such as securities firms and insurance companies.

China Galaxy Securities’ main viewpoints are as follows:

Deepening Capital Market Reforms, Direct Benefits for the Securities Industry

The report explicitly states the continuation of comprehensive reforms in investment and financing in the capital market, further improving mechanisms for long-term funds to enter the market, enhancing investor protection systems, expanding private equity and venture capital exit channels, and increasing the proportion of direct and equity financing. It also mentions normalizing the implementation of “green channels” for listing and M&A for key core technology companies, which benefits core businesses like securities underwriting, asset management, and investment banking. Additionally, the “800 billion yuan in new policy-based financial instruments” and the establishment of special funds for fiscal and financial coordination to stimulate domestic demand are expected to further leverage social capital, driving continuous growth in bond underwriting and asset management, thereby solidifying the industry’s recovery foundation.

Insurance Industry Gains “Protection + Investment” Dual Benefits, Long-term Capital Advantages Highlighted

On the liability side, ongoing improvements in the maternity insurance system, increased basic pensions for urban and rural residents, accelerated coverage of long-term care insurance, and the comprehensive promotion of personal pension systems directly drive the expansion of demand for commercial pension and health insurance, significantly enhancing the certainty, sustainability, and stability of growth in protection-oriented businesses, thus building a solid cash flow and profit base for the industry. On the asset side, regulators continue to guide insurance funds to leverage their long-term nature, with insurance capital serving as “patient capital” to allocate new productive capacity, infrastructure, and green industries. Diversified asset allocation helps optimize duration matching and hedge against asset yield pressures during interest rate declines, pushing the insurance industry into a new phase of high-quality development characterized by stable liability growth and asset optimization.

Five Major “Financial Articles” Continue to Upgrade, Opening Long-term Growth Space for Non-bank Institutions

In financial technology, the report emphasizes increasing policy support for AI, low-altitude economy, biomedicine, and other emerging productive sectors. It accelerates the construction of a financial service system covering the entire lifecycle of tech companies and promotes financial resource tilt toward new productive fields. Regarding green finance, the report specifies implementing total and intensity control systems for carbon emissions, establishing a national low-carbon transition fund, improving green finance standards and carbon accounting mechanisms for financial institutions, expanding green bonds and transition financial products, and leveraging carbon reduction tools to channel long-term capital into green and low-carbon sectors. Inclusive finance and pension finance, supported by livelihood projects, continue to expand, aligning with residents’ consumption upgrades, rural revitalization, and SME financing needs. Efforts to provide and optimize more adaptable financial products and services are ongoing. The high-quality development of non-bank financial institutions is expected to deepen further, integrating with technological innovation, green development, and social welfare, with long-term value increasingly highlighted.

Risk Mitigation and Asset Quality Improvement

The report advocates coordinated efforts to resolve risks in real estate and local government debt in an orderly manner, emphasizing strict control over new implicit debt, optimizing debt restructuring, and revitalizing existing assets. These measures aim to improve credit conditions in urban investment and real estate chains and alleviate asset quality pressures on non-bank financial institutions. It also proposes advancing the reduction and quality improvement of local small and medium-sized financial institutions, strengthening regulatory coordination, and enhancing risk disposal and transformation efforts. Industry consolidation may accelerate, with stronger, well-controlled non-bank institutions gaining greater development advantages.

Risk Warnings

Risks of macroeconomic underperformance; policy implementation falling short of expectations; and market volatility affecting the capital market.