Banking Sector Gains Momentum: ABC Rises Over 2%, Largest Bank ETF (512800) Sees Inflows of 270 Million

Deep News11-27

On November 27, the broader market experienced a pullback after an early rally, with the banking sector once again demonstrating its defensive appeal. Agricultural Bank Of China Limited (ABC) surged over 2%, while eight other banking stocks, including Shanghai Rural Commercial Bank, Qingdao Bank, Hangzhou Bank, and SPD Bank, rose more than 1%. The largest bank ETF (512800) opened lower but steadily climbed into positive territory, closing up 0.36% and reclaiming its 5-day and 10-day moving averages. The ETF recorded a trading volume of 998 million yuan, up 120 million yuan from the previous session.

Amid recent market volatility, opportunities for catch-up gains and defensive allocations have emerged. Institutions widely agree that now is an opportune time to allocate to the banking sector. On one hand, the sector's price-to-book (PB) ratio stands at just 0.73x (as of November 27, 2025), significantly lower than valuations of banks in major global economies. Since 2022, the banking sector's performance has been driven by valuation re-rating and upward revisions, with further room for recovery. On the other hand, China's economy is gradually recovering, and banks maintain stable operations. Coupled with consistent high dividend payouts, the sector holds strong appeal for absolute-return and allocation-focused investors.

Galaxy Securities noted that insurance capital continues to increase holdings in banks, with further room for incremental allocations. The sector's investment value remains prominent, supported by the "15th Five-Year Plan" driving banking transformation and improved Q3 net profits. Mid-term dividend payouts remain robust, reinforcing the sector's income appeal. Changjiang Securities highlighted that short-term market sentiment and trading flows have not altered the banking sector's systemic re-rating trend since 2023. Each pullback presents allocation opportunities for long-term investors.

Notably, the largest bank ETF (512800) recently saw renewed inflows. Exchange data shows the ETF attracted net inflows of 270 million yuan over the past two trading days.

Bank ETF (512800) and its feeder funds (Class A: 240019; Class C: 006697) track the CSI Bank Index, covering 42 listed banks in China, making it an efficient tool for sector exposure. As of November 11, the ETF's AUM reached 20.615 billion yuan, up 13.127 billion yuan year-to-date, reflecting strong investor interest. With an average daily turnover exceeding 800 million yuan in 2025, it ranks as the largest and most liquid banking ETF in China.

Risk Disclosure: The ETF tracks the CSI Bank Index (base date: December 31, 2004; launch date: July 15, 2013). The index's annual returns for the past five years are: 2024: 34.71%; 2023: -7.27%; 2022: -8.78%; 2021: -4.41%; 2020: -4.23%. Index constituents may change per rules, and past performance does not guarantee future results. Holdings are for illustrative purposes only and do not constitute investment advice or reflect fund positions. The fund is rated R3 (moderate risk) and suitable for balanced (C3) or higher-risk investors. Investment decisions carry risks; performance is not indicative of future results.

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