Following a rotational pullback the previous day, the banking sector strengthened again during intraday trading on July 22, resuming its upward trend. The price of the leading hundred-billion yuan bank ETF, Huabao (512800), rose over 1% again, marking its twelfth gain in sixteen days since the July rebound. The CSI Bank Index has accumulated a gain of 7.79% over this period, outperforming the broader market by over 13 percentage points (the Shanghai Composite Index fell 5.55% over the same interval).
A large majority of individual stocks were in positive territory. Bank of Chengdu Co., Ltd. and Bank of Communications Co., Ltd. rose over 2%, while over ten stocks including China Merchants Bank Co., Ltd., Chongqing Rural Commercial Bank Co., Ltd., Bank of Chongqing Co., Ltd., Industrial Bank Co., Ltd., and Agricultural Bank of China Ltd. gained more than 1%.
On the news front, the first batch of listed banks have released their semi-annual performance reports. On the evening of July 21, Bank of Chongqing Co., Ltd. and Chongqing Rural Commercial Bank Co., Ltd. disclosed their 2026 semi-annual performance forecasts, with both reporting year-on-year growth in both operating revenue and net profit attributable to parent company shareholders, sending positive signals.
Bank of Chongqing Co., Ltd. achieved operating revenue of 8.486 billion yuan, a year-on-year increase of 10.80%; its net profit attributable to parent company shareholders was 3.518 billion yuan, up 10.28% year-on-year. Chongqing Rural Commercial Bank Co., Ltd. reported operating revenue of 15.892 billion yuan and net profit attributable to parent company shareholders of 8.168 billion yuan, representing year-on-year growth of 7.81% and 6.09%, respectively.
Benefiting from a bottoming and stabilization of net interest margins, the revenue elasticity of banks in 2026 is expected to see significant repair compared to the past three years. Coupled with increasing divergence in the technology sector and a marginal decline in market risk appetite, there is a need for style rebalancing. As a representative of stable dividend-paying assets, the banking sector stands to benefit significantly.
CITIC Securities pointed out that from an absolute return perspective, bank stocks, as stable equity assets with relatively certain returns, are suitable for allocation by low-volatility, steady capital. From a relative return perspective, short-term performance is attributed to market style influences, while long-term performance is attributed to valuation and equity return potential from an industry comparison perspective.
Guosheng Securities stated that the current investment focus in the banking sector centers on the theme of valuation repair driven by the recovery of core revenue growth. The banking sector combines the strong certainty of profit recovery with high-dividend attributes, further highlighting its cost-effectiveness as a defensive and offensive allocation.
Zheshang Securities believes the outlook for the banking sector in the second half of the year is positive. The banking sector is entering a golden window for allocation where the probability of success and potential returns are aligning. Against the long-term macro backdrop of low interest rates and an asset shortage, bank stocks possess both "bond-like attributes" and a "positive option on economic recovery," making them scarce assets worthy of close attention.
Riding the trend and offering both offense and defense! The Huabao Bank ETF (512800) and its feeder funds (Class A: 240019; Class C: 006697) passively track the CSI Bank Index. The index's constituent stocks encompass 42 A-share listed banks, making it an efficient investment tool for tracking the overall performance of the banking sector. The Bank ETF (512800) has a fund size exceeding one hundred billion yuan, with an average daily turnover of over 700 million yuan since 2025, making it the largest and most liquid among the ten banking sector ETFs in the A-share market.
Data source: Shanghai and Shenzhen Stock Exchanges, etc.
Institutional views source: CITIC Securities report dated July 19, 2026; Guosheng Securities report dated July 7, 2026; Zheshang Securities report dated July 11, 2026.
ETF fee-related note: When investors subscribe for or redeem fund units, subscription/redemption agents may charge a commission not exceeding 0.5%, which includes relevant fees charged by stock exchanges, registration institutions, etc. Feeder fund fee-related note: The subscription fee rate (front-end load) for the Huabao CSI Bank ETF Feeder Fund (Class A) is 1,000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) or above, 0.6% for amounts between 1 million yuan (inclusive) and 2 million yuan, and 1% for amounts below 1 million yuan. The redemption fee rate is 1.5% for a holding period 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. The Huabao CSI Bank ETF Feeder Fund (Class C) does not charge a subscription fee. The redemption fee rate is 1.5% for a holding period 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: The Huabao Bank ETF (512800) passively tracks the CSI Bank Index. The base date for this index is December 31, 2004, and it was published on July 15, 2013. The index's performance over the past five complete calendar years is as follows: 2025, +6.79%; 2024, +34.71%; 2023, -7.27%; 2022, -8.78%; 2021, -4.41%. Its volatility over the past five complete calendar years is: 2025, 14.03%; 2024, 19.34%; 2023, 13.41%; 2022, 18.56%; 2021, 18.63%. The composition of the index's constituent stocks is adjusted according to its compilation rules. Past performance is not indicative of future results. The constituent stocks mentioned herein are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form and do not represent the holdings or trading动向 of any fund managed by the fund manager. The fund manager assesses the risk level of this fund as R3 - Medium Risk, suitable for Balanced (C3) and above investors. Any information appearing in this article is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest with caution in funds.
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