Market Overview - On May 22, the A-share main indices collectively retreated, with the Shanghai Composite Index down 0.22%, the Shenzhen Component Index down 0.72%, and the ChiNext Index down 0.96%. Only about 800 stocks in the market rose [1] - The total trading volume in the Shanghai and Shenzhen markets was 1,102.689 billion RMB, a decrease of over 70 billion RMB compared to the previous trading day [2] Sector Performance - In the banking sector, there was a 1.00% increase, while the media sector rose by 0.12% and household appliances by 0.04%. Conversely, the beauty and personal care sector fell by 2.03%, social services by 1.80%, and basic chemicals by 1.70% [7] - The Hong Kong stock market also saw declines, with the Hang Seng China Enterprises Index down 0.79% and the Hang Seng Index down 1.19% [5][6] Banking Sector Insights - Following the recent reduction in deposit rates by major state-owned banks, several joint-stock banks have also adjusted their rates, which is expected to lower banks' funding costs and alleviate net interest margin pressures. Analysts suggest that the asymmetric interest rate cuts will stabilize bank margins [8] - A report from China Galaxy Securities indicates that despite fluctuations in the banking sector's performance in Q1, recent financial policies and structural tools are expected to support a positive accumulation of fundamental factors, leading to a potential performance turnaround for banks [8] Defense and Aerospace Sector - Despite a pullback in the defense and aerospace sector, there has been a counter-trend inflow of funds, with the Defense ETF seeing a net inflow of 443 million RMB on May 21, bringing its total scale to over 4.34 billion RMB, with a year-on-year increase of 13.54% [9] - Analysts believe that the defense sector has two main advantages: improved earnings certainty for mid-year reports and low correlation with the macro economy, which may allow it to develop an independent market trend [9] Investment Products - Relevant investment products in the banking sector include the China Securities Bank ETF (512730) and LOF (A Class 160631, C Class 012042) [9] - For the defense sector, investment products include the Defense ETF (512670) and LOF (A Class 160630, C Class 012041) [9]