On October 27, the banking sector continued its upward push, with 40 of the 42 listed banks in the A-share market closing higher. China Construction Bank Corporation (ASX: 601939) once again set a new historical high, while Shanghai Rural Commercial Bank led gains of over 4%. Bank of Chongqing rose more than 3%, and eight stocks including Xiamen Bank, Bank of Chengdu, and Bank of Beijing gained over 2%. The underlying index of Bank ETF Huabao (512800) rose another 1.25% following the previous day's 1.79% advance. As technology stocks pulled back, banks continued to strengthen against the broader market, refreshing stage highs, and calls for a "banking NVIDIA"-style rally resurfaced. With interim dividends from listed banks being implemented successively and third-quarter earnings disclosures entering a密集 period, the investment value of high-dividend assets has regained market attention.
In the short term, signals of a stabilization in market sentiment remain unclear, and defensive dividend assets including banks may still find support. From a medium-term perspective, institutions believe that the direction of low-valuation repair and dividend value reassessment for bank stocks is not constrained by market style. Changjiang Securities stated: First, the period from the fourth quarter to early next year remains an important allocation window for dividend assets, with interim dividends currently in progress; second, mainstream banks' third-quarter results are stable and improving, with net interest margins stabilizing and full-year sustainability intact; third, the certainty of stable growth is strong, and the logic of policy maintaining banking system stability is solid.
Feng Chencheng, fund manager of Bank ETF Huabao (512800), also noted that based on statistics of bank sector performance over the past decade, bank stocks generally deliver excess returns in the fourth quarter, with only 2016, 2021, and 2023 failing to achieve excess returns. Meanwhile, considering the significant easing of selling pressure in the first half, the rebalancing of market style, and the implementation of new asset-liability regulations for insurance at year-end, the probability of banks achieving relative returns on a阶段性 basis is rising. From a capital behavior perspective in the fourth quarter, as year-end assessments approach, style tends toward conservatism; at the same time, insurance funds are positioning early for a strong start to the year, creating demand for high-dividend assets.
Recently, Ping An Bank disclosed the first third-quarter report among listed banks, reporting operating revenue of 103.1 billion yuan, up 2.4% year-on-year, and net profit attributable to shareholders of 39.186 billion yuan, up 2.2% year-on-year. The third-quarter bank earnings season has started on a good note, and solid fundamentals create room for upward revision of the sector's valuation center. As of now, the banking sector's valuation level remains relatively low, with all 42 listed banks in the A-share market still trading below book value (as of October 27, 2026, same below). The sector's overall price-to-book ratio (PB, LF) is only 0.73 times, below the median level at the 44.2% percentile since the index's launch.
Riding the momentum, combining offense and defense! Bank ETF Huabao (512800) passively tracks the CSI Bank Index, with constituent stocks encompassing all 42 listed banks in the A-share market. The 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 urban-rural commercial banks such as China Merchants Bank, Industrial Bank, and Bank of Jiangsu. It is 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 view source: Changjiang Securities 261025 "Dividend Bank Era Series Nineteen: Which Lagging Bank Stocks Have Room for Repair?" ETF fee-related notes: When investors subscribe or redeem fund shares, the subscription and redemption agent may charge a commission of no more than 0.5%, which includes related fees charged by stock exchanges and registration institutions. Feeder fund fee-related notes: Huabao CSI Bank ETF Feeder Fund (Class A) subscription fee (front-end) is 1,000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) or more, 0.6% for 1 million yuan (inclusive) to 2 million yuan, and 1% for amounts below 1 million yuan; the redemption fee is 1.5% for holding periods of less than 7 days, 0.5% for 7 days (inclusive) to 180 days, 0.25% for 180 days (inclusive) to 1 year, and 0% for 1 year (inclusive) or more; no sales service fee is charged. Huabao CSI Bank ETF Feeder Fund (Class C) does not charge a subscription fee, the redemption fee is 1.5% for holding periods of less than 7 days, 0.5% for 7 days (inclusive) to 30 days, and 0% 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, which has a base date of December 31, 2004, and was launched on July 15, 2013. The CSI Bank Index's returns over the past five complete fiscal years were: 2025, 6.79%; 2024, 34.71%; 2023, -7.27%; 2022, -8.78%; 2021, -4.41%; volatility over the past five complete fiscal years was: 2025, 14.03%; 2024, 19.34%; 2023, 13.41%; 2022, 18.56%; 2021, 18.63%. Index constituent composition is adjusted in a timely manner according to the index compilation rules, and past performance does not predict future results. Index constituent stocks mentioned in this article are for illustrative purposes only, and individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund under the manager. The risk level of this fund as assessed by the fund manager is R3-medium risk, suitable for balanced-type (C3) and above investors. 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 assume any responsibility for direct or indirect losses caused by the use of the content herein. 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 fund performance. Fund investment requires caution. MACD golden cross signals have formed, and these stocks are performing well!
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