On November 13, the banking sector rallied against the broader market trend. As of the close, the Wind Banking Index rose 1.46%. Bank of Qingdao Co., Ltd. (HKEX: 3866) gained 3.65%, while Bank of Jiangsu Co., Ltd. (SSE: 600919) and Bank of Nanjing Co., Ltd. (SSE: 601009) both climbed around 2%, all reaching record highs.
A research report from Galaxy Securities suggested that institutional funds have shifted toward increasing their allocation to banks, with the combination of loosening tech-sector holdings, demand for dividend-based defensive plays, and improving fundamentals reflected in third-quarter earnings reports jointly supporting a valuation recovery in the sector.
Galaxy Securities noted that the accelerated deployment of stock buyback and shareholding increase relending facilities is expected to directly boost banks' interest income in the short term. Over the medium to long term, the stabilization and recovery of the capital market should help improve banks' non-interest income from wealth management, fund distribution, and custody services.
In terms of performance, listed banks showed improvement in their operating results for the first three quarters. According to a research report from Guosheng Securities, in the first three quarters of 2026, A-share listed banks saw their operating revenue and net profit attributable to parent company shareholders grow by 7.79% and 3.78% year-on-year, respectively, up 0.39 and 0.82 percentage points from the first half of the year, indicating that profit growth has accelerated.
Guosheng Securities pointed out that high-quality regional city commercial banks demonstrated outstanding earnings growth elasticity, and active equity funds clearly favored city commercial banks in their third-quarter position additions. The institution believes that regions with leading economic vitality, bolstered by regional economic dividends, possess stronger capacity for asset expansion and credit deployment advantages.
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