Core Viewpoint - The majority of Chinese bank stocks have risen, indicating a positive market sentiment towards the banking sector, supported by stable profit growth and favorable conditions for earnings performance [1] Group 1: Stock Performance - China Merchants Bank (03968) increased by 3.87%, reaching HKD 47.78 - Chongqing Bank (01963) rose by 3.72%, reaching HKD 7.53 - CITIC Bank (00998) saw a 3.23% increase, reaching HKD 7.04 - China Construction Bank (00939) grew by 2.61%, reaching HKD 7.51 - Bank of China (03988) increased by 1.91%, reaching HKD 4.26 [1] Group 2: Earnings Outlook - According to Guotai Junan Securities, the banking sector's performance is expected to remain stable, with a profit growth rate of 0.8% for listed banks in the first half of 2025, indicating a positive trend for the full year [1] - From a marginal change perspective, the year-on-year decline in bank interest margins is expected to continue narrowing, which is beneficial for earnings performance [1] Group 3: Market Conditions - Galaxy Securities notes that increased uncertainty regarding tariffs has heightened global asset price volatility, creating a demand for defensive asset allocation, which presents opportunities for bank investments [1] - The banking sector offers stable dividends, and after a period of adjustment, the dividend yield has become more attractive, likely drawing in risk-averse capital [1]