According to the CITIC Securities Research Report, since July, the market style has been rebalanced, and the performance of the banking sector has clearly picked up. Both absolute returns and relative earnings have recorded good performance. Public equity holdings have also clearly rebounded 0.92 ppts to 1.93%, the highest level since 2025Q3. We believe that the sector has multiple resonance effects of market style, improved capital, and stable operating expectations. Looking at investment strategies, bank stocks are affected by capital fluctuations in the short term, but the medium-term direction is driven by fundamentals and allocation-type capital. The sector is expected to be revalued from “high-dividend defensive assets” to “high-certainty equity assets.” It is expected that the upward direction of valuation will continue throughout the year.

According to the CITIC Securities Research Report, since July, the market style has been rebalanced, and the performance of the banking sector has clearly picked up. Both absolute returns and relative earnings have recorded good performance. Public equity holdings have also clearly rebounded 0.92 ppts to 1.93%, the highest level since 2025Q3. We believe that the sector has multiple resonance effects of market style, improved capital, and stable operating expectations. Looking at investment strategies, bank stocks are affected by capital fluctuations in the short term, but the medium-term direction is driven by fundamentals and allocation-type capital. The sector is expected to be revalued from “high-dividend defensive assets” to “high-certainty equity assets.” It is expected that the upward direction of valuation will continue throughout the year.