Changjiang Securities·2025-11-17 23:30Investment Rating - The industry investment rating is "Positive" and maintained [12]. Core Insights - The report identifies three core strategies for bank stock allocation: 1) Long-term strategic allocation to large banks using bond and non-standard asset replacement thinking, with recent mid-term dividend acceleration driving market performance; 2) Gradually increasing positions in high-quality city commercial banks in the Yangtze River Delta region to provide dividend yield flexibility; 3) Small and medium-sized insurance companies seeking long-term equity investment opportunities in small and medium-sized banks [2][6][9]. Summary by Sections Market Trends - Since the third quarter, bank stocks have experienced significant adjustments due to market style factors, but the direction of revaluation remains unchanged. The state-owned bank index has recently reached new highs, indicating sustained allocation power [6][7]. Large Banks - Large banks are becoming strategic allocation targets, with a focus on long-term debt cost advantages. The static PB valuation of Agricultural Bank A shares is below 3%, while most mainstream banks maintain dividend yields between 4% and 5.5%. The report recommends focusing on China Merchants Bank, low-valuation Bank of Communications, and state-owned H-shares [7][8]. City Commercial Banks - City commercial banks in the Yangtze River Delta have seen significant price adjustments, with public fund holdings decreasing by 1.4 percentage points to 0.83%. The report highlights the stable growth potential of these banks, with a focus on dividend yields and credit growth rates exceeding national averages [8][9]. Small and Medium-sized Insurance Companies - Small and medium-sized insurance companies are expected to actively seek long-term equity investment opportunities in small banks. Regulatory limits on single-stock investments will drive these companies to target mid-sized banks with market capitalizations in the hundreds of millions [9].