On November 13, the banking sector maintained its strong momentum. As of 13:43, the Bank AH index rose 1.12%, and the Bank AH Select ETF (517900) surged intraday, nearing a new high. Qingdao Bank, Jiangsu Bank, Nanjing Bank, Chengdu Bank, and Hangzhou Bank all hit record highs together. The fund recorded net inflows on four of the past five trading days. On the news front, for the first three quarters of 2026, the combined operating revenue of 42 A-share listed banks reached approximately 4.66 trillion yuan, up 7.81% year-on-year, while net profit attributable to shareholders totaled about 1.75 trillion yuan, up 3.78% year-on-year, providing a solid earnings foundation that supports sector valuations. The pace of net interest margin narrowing has slowed somewhat, and the interim dividend payout ratio of major state-owned banks was raised to 31%. Stable cash dividends and relatively low valuation levels remain the primary supports for long-term capital allocation to bank stocks. Qingdao Bank rose more than 4%, while Jiangsu Bank, Nanjing Bank, Chengdu Bank, and Hangzhou Bank each gained around 2%, all reaching record highs. Qilu Bank, Xi'an Bank, Bank of Beijing, and Bank of China were among the top gainers. Analysts noted that as valuation bubbles in the technology sector are squeezed out, banks have become a reservoir for reallocated capital inflows. More critically, insurance funds are a key driver: with the 10-year government bond yield at a low level and bank dividend yields exceeding 4%, high dividends have become an institutional choice. Public funds remain significantly underweight, and this mismatch in positioning is the direct catalyst for the rally. The five city commercial banks—Qingdao Bank, Jiangsu Bank, and others—setting record highs together indicates that capital is spreading toward more elastic names within the sector. The rules-based mechanism of the Bank AH Index systematically captures the structural benefits of AH price differentials, resonating with improving sector fundamentals. It is understood that the Bank AH Select ETF (517900) is the only on-exchange vehicle tracking the CSI Bank AH Price Select Index, dynamically capturing A/H premium and discount differentials each month to select the more undervalued targets. Its top ten holdings cover AH leaders such as China Merchants Bank, Industrial Bank, Industrial and Commercial Bank of China, and Agricultural Bank of China. According to Wind data, as of November 9, 2026, the fund has achieved an annualized return of 11.46% since inception. However, it is worth noting that the banking sector has risen for multiple consecutive days, and short-term volatility may increase. UBS also pointed out that valuation repair is a gradual process. Investors may wish to pay attention prudently in light of their own risk tolerance and should not simply extrapolate consecutive gains and individual stock record highs as confirmation of a sustained accelerating rally. MACD golden cross signals have formed, and these stocks are performing well.
Comments