Core Viewpoint - Domestic bank stocks are experiencing a continued rise, with significant gains reported for major banks, indicating a potential recovery in the banking sector without large-scale stimulus measures [1] Group 1: Stock Performance - Postal Savings Bank (01658) increased by 3.3% to HKD 5.63 - Agricultural Bank (01288) rose by 2.05% to HKD 5.97 - Industrial and Commercial Bank (01398) gained 1.34% to HKD 6.04 - Bank of China (03988) saw a 1.15% increase to HKD 4.41 [1] Group 2: Market Analysis - Morgan Stanley's latest report suggests that domestic bank stocks are nearing a natural cycle bottom in Q3, marking the first instance in China's financial system to achieve this without major stimulus [1] - Key indicators such as M1 growth rebound and improved industrial profits have occurred without significant stimulus [1] - Anticipated factors supporting bank stock revaluation include upcoming dividend distributions in Q4, stabilized interest rates, and a supportive RMB 500 billion structural financial policy tool [1] Group 3: Earnings Outlook - Everbright Securities highlights the resilience of bank operating performance, with expectations for stable revenue growth and slight improvement in profit growth for the first three quarters [1] - The bank sector's "high dividend, low valuation" characteristics have become more pronounced following adjustments since Q3 2025, with Hong Kong-listed banks showing a relative pricing advantage [1] - Increased risk aversion due to US-China tensions is enhancing the defensive appeal of bank stocks, attracting continued investment from insurance, asset management companies, and industrial capital [1]