news flash·2025-07-14 00:27Core Viewpoint - CITIC Securities expects the banking sector to continue its upward trend in the third quarter, driven by significant excess returns relative to the broader market since July [1] Summary by Relevant Sections Banking Sector Performance - Since July, the banking sector has shown significant excess returns compared to the broader market, indicating a strong performance [1] - There are notable characteristics of undervalued stocks in the sector, suggesting a potential for price recovery [1] Market Dynamics - The upcoming dividend season for major banks is expected to enhance short-term market sentiment and increase trading activity among institutional investors [1] - The logic for re-evaluating bank net assets has not been fully realized, indicating potential for further upward movement despite short-term volatility [1] Profit Expectations - The first quarter's loan repricing effects have been fully realized, and the bond market remained relatively stable in the second quarter, leading to a stabilization in profit growth for banks [1] - It is anticipated that the year-on-year profit growth for banks in the first half of the year will recover [1]