ZHESHANG SECURITIES·2025-06-18 01:06Market Overview - On June 17, the Shanghai Composite Index fell by 0.04%, the CSI 300 decreased by 0.09%, the STAR Market 50 dropped by 0.8%, the CSI 1000 declined by 0.1%, the ChiNext Index decreased by 0.36%, and the Hang Seng Index fell by 0.34% [3][4] - The best-performing sectors on June 17 were coal (+0.89%), utilities (+0.82%), oil and petrochemicals (+0.72%), transportation (+0.52%), and retail (+0.51%). The worst-performing sectors were pharmaceuticals and biotechnology (-1.44%), beauty and personal care (-1.24%), media (-1.22%), textiles and apparel (-0.75%), and light industry manufacturing (-0.67%) [3][4] - The total trading volume for the A-share market on June 17 was 1,237.1 billion yuan, with a net inflow of 6.302 billion Hong Kong dollars from southbound funds [3][4] Key Insights - The report emphasizes the selection of "the rose of time" in the current market, recommending improvement-oriented banks in economically developed regions of A-shares: Pudong Development Bank, Shanghai Bank, Nanjing Bank, and Jiangsu Bank. For Hong Kong stocks, it suggests focusing on value-oriented state-owned banks: Hong Kong state-owned banks, CITIC Bank, and China Everbright Bank [5] - The market sentiment indicates concerns that bank stocks may have entered the "second half" of their cycle, but the report argues that the current market is the beginning of a long cycle rather than its end. The underlying logic for this cycle is driven by a low interest rate environment and the revaluation of RMB assets [5][6] - The report highlights a shift in strategy, advocating for a bull market mindset when participating in the current significant bank stock market, with a focus on selecting individual stocks based on microeconomic factors [5]