Group 1 - The China Securities Bank ETF (512730.SH) rose by 0.98%, with the associated index, the China Securities Bank Index (399986.SZ), increasing by 0.95% as of May 20 [1] - Major constituent stocks such as China Merchants Bank increased by 1.44%, Industrial Bank by 0.75%, Bank of Communications by 1.06%, Jiangsu Bank by 0.93%, and Shanghai Pudong Development Bank by 0.92% [1] - Several state-owned and joint-stock banks lowered the RMB deposit benchmark rates, with the current rate down by 5 basis points to 0.05% and term deposit rates reduced by 15-25 basis points [1] Group 2 - According to a report by Galaxy Securities, recent reserve requirement ratio (RRR) cuts and interest rate reductions, along with structural tools, have positively impacted the banking sector's fundamentals [1] - The reduction in deposit rates may alleviate the pressure on banks' interest margins, combined with enhanced policy support expectations, providing a boost to the banking sector [1] - Galaxy Securities forecasts that the performance of listed banks in 2024 and the first quarter of 2025 may be temporarily affected by non-interest income, but the overall positive trend in fundamentals remains unchanged [1] Group 3 - Huachuang Securities analysis indicates that the banking sector could see an inflow of 194.23 billion yuan, accounting for 6.4% of the free float market value, reflecting the potential demand for allocation in the banking sector [1] - The current allocation of the banking sector within the CSI 800 index constituents shows a 7.3 percentage point underweight, indicating room for increased investment [1]