Mei Ri Jing Ji Xin Wen·2025-10-21 03:29Core Viewpoint - The banking sector has shown resilience with an overall increase of 5% amidst a broader market decline of 3.4%, indicating potential for recovery and investment opportunities in the sector [1] Group 1: Market Performance - The overall A-share market declined by 3.4%, while the banking sector (CITIC primary industry) increased by 5%, leading all industries [1] - The performance of different types of banks varied, with state-owned banks, joint-stock banks, city commercial banks, and rural commercial banks showing changes of 5.43%, 3.87%, 5.98%, and 7.12% respectively [1] - The Hang Seng Composite Index fell by 4.1%, while H-shares of banks rose by 0.9%, outperforming the Hang Seng Composite Index but underperforming A-share banks [1] Group 2: Investment Outlook - Guangfa Securities suggests that the recent decline in bond market interest rates and the stabilization of long-term bond rates are favorable for the valuation recovery of the banking sector [1] - It is noted that in the third quarter, asset and liability concentration shifted towards large banks, and overall recovery characteristics in middle-income suggest that large banks will perform better than the sector [1] - The banking sector is entering a bottoming phase, which is expected to continue until the end of the year due to funding allocation needs at year-end and the beginning of the year [1] - There is a recommendation for investors to consider opportunistic buying during this bottoming phase, particularly in bank ETF funds (515020), which track the China Securities Banking Index that has recently returned above the annual line [1]