On October 27, the banking sector extended its rally, with Shanghai Rural Commercial Bank leading gains at 3.65%, while Chongqing Bank, Bank of Beijing, Bank of Jiangsu, Bank of Nanjing and two other stocks rose more than 2%, and China Construction Bank Corporation (ASX: 601939) climbed to a new record high.
The underlying index of Bank ETF Huabao (512800), after surging 1.79% the previous day, rose more than 1% intraday.
Bank stocks have continued to draw market attention recently. As interim dividends from listed banks are successively implemented and third-quarter earnings disclosures enter a dense period, the investment value of high-dividend assets has become a focal point for the market.
At present, signals of a stabilization in fourth-quarter market sentiment are not yet obvious. Against the backdrop of an unclear recovery situation, dividend defensive assets including bank stocks still have favorable support.
Zhongtai Securities pointed out that the deterministic full-year performance of banks will bring steady returns for bank stocks in 2026, with short-term performance related to market style; the economic development model will continue (strong policy resolve), and strong corporate business and persistently low risk appetite among residents will drive net interest margin to bottom out and rebound, with continuous revenue growth being a highlight and earnings certainty strong.
On valuation, Huafu Securities believes that current bank stock valuations are not significantly overvalued compared with 2025. On one hand, the banking industry itself has relatively stable earnings growth attributes, driving the current bank index upward, and the PB valuation is notably lower than last year's peak; on the other hand, the dividend yield also has a relative comparative advantage over interest rates, and since August bank stocks have only seen a "structural rise," with overall valuations not high.
Riding the Momentum, Combining Offense and Defense!
Bank ETF Huabao (512800) passively tracks the CSI Bank Index, with constituent stocks encompassing 42 listed banks in the A-share market. Its top ten weighted stocks gather large-cap leaders such as Industrial and Commercial Bank of China, Agricultural Bank of China, and Bank of Communications, and also cover growth-oriented joint-stock banks and city and rural commercial banks such as China Merchants Bank, Industrial Bank, and Bank of Jiangsu, making it an efficient investment tool for tracking the overall performance of the banking sector. Off-market investors may consider the feeder fund (Class A: 240019; Class C: 006697).
Data source: Shanghai and Shenzhen stock exchanges, etc. Institutional views source: Zhongtai Securities report "Bank Stock Dividend Value Review (III): Looking at the Spread Anchor Between Bank Dividend Yield and Government Bonds from Historical Review"; Huafu Securities report "Are Bank Stocks Currently Expensive?"
ETF fee-related notes: When investors subscribe to or redeem fund shares, the subscription and redemption agency may charge a commission of no more than 0.5%, which includes related fees charged by stock exchanges, registrars, and others. Feeder fund fee-related notes: Huabao CSI Bank ETF Feeder Fund (Class A) subscription fee (front-end) is 1,000 yuan per transaction when the subscription amount is 2 million yuan (inclusive) or more, 0.6% when between 1 million yuan (inclusive) and 2 million yuan, and 1% when below 1 million yuan; the redemption fee is 1.5% when held for fewer than 7 days, 0.5% when held for 7 days (inclusive) to 180 days, 0.25% when held for 180 days (inclusive) to 1 year, and 0% when held for 1 year (inclusive) or more; no sales service fee is charged. Huabao CSI Bank ETF Feeder Fund (Class C) charges no subscription fee, with a redemption fee of 1.5% when held for fewer than 7 days, 0.5% when held for 7 days (inclusive) to 30 days, and 0% when held for 30 days (inclusive) or more; the sales service fee is 0.2%.
Risk disclosure: Bank ETF Huabao (512800) passively tracks the CSI Bank Index, whose base date is December 31, 2004, and which was published on July 15, 2013. The CSI Bank Index's performance over the past 5 full years was: 2025, 6.79%; 2024, 34.71%; 2023, -7.27%; 2022, -8.78%; 2021, -4.41%; volatility over the past 5 full years was: 2025, 14.03%; 2024, 19.34%; 2023, 13.41%; 2022, 18.56%; 2021, 18.63%. Index constituent composition is adjusted in due course according to the index compilation rules, and past performance does not predict future performance. The index constituents mentioned in this article are for display only, and individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading trends of any fund under the manager. The risk level of this fund as assessed by the fund manager is R3-medium risk, suitable for investors with balanced (C3) or above risk profiles. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for any investment decisions they make independently. In addition, any views, analyses, and forecasts in this article do not constitute investment advice in any form to readers, nor do they bear any responsibility for direct or indirect losses caused by the use of the content of this article. Fund investment involves risks, past performance of a fund does not represent its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund investment requires caution. MACD golden cross signals have formed, and these stocks are rising well!
Comments