Core Viewpoint - The banking sector experienced a significant drop of nearly 3% on Friday, leading the market decline, despite the AH Preferred Bank ETF (517900) achieving a year-to-date gain of 23.17%, making it the only bank ETF to surpass 20% this year [1] Group 1: Market Performance - The bank sector has seen a cumulative increase of 106% since the bull market began in November 2022, indicating a strong upward trend over the past two and a half years [1] - The recent technical correction is viewed as normal following a period of accelerated growth, compounded by the "month-end effect" due to tightening liquidity [1] Group 2: Investment Trends - Insurance companies are reportedly reallocating their investments, with China Life Insurance revealing that its high-dividend asset allocation has reached 30% in equity investments, while the overall allocation in the insurance industry remains low at 12%, leaving approximately 6 trillion yuan available for investment [1] - In 19 instances of stock purchases this year, 9 targeted bank stocks, highlighting the continued appeal of bank shares amid an asset scarcity environment [1] Group 3: ETF Insights - The AH Preferred Bank ETF (517900) is based on the "Bank AH" index, which had a dividend yield of 6.51% as of the end of May, employing a rotation strategy to select undervalued stocks [1] - Investors can access this ETF through linked funds (Class A: 016572; Class C: 016573) for market participation [1]

Core Viewpoint - The A-share market experienced a significant decline on June 27, 2025, with the banking sector, valued over 10 trillion yuan, facing a collective sell-off, leading to a drop of 2.69% in the banking index, closing at 4349.04 points [1] Group 1: Market Performance - The banking index closed at 4349.04 points, reflecting a decline of 2.69% [1] - The sell-off in the banking sector was characterized as a sudden adjustment that caught the market off guard [2] Group 2: Factors Influencing Decline - The "month-end effect" was identified as a contributing factor, with historical data showing poor performance of the banking sector at month-end, attributed to tightening liquidity and institutional settlements [2] - Reports of a large institution reallocating investments away from high-dividend stocks, including bank shares, towards growth-oriented stocks in the Sci-Tech Innovation Board were interpreted as a signal of potential outflows from the banking sector [3] Group 3: Broader Market Context - The decline in bank stocks was not isolated, as other dividend stocks like China Petroleum and Yangtze Power also experienced significant drops, raising concerns about the overcrowding in the banking sector [3] - Despite the adjustments, some analysts believe the decline is temporary, with trading congestion in bank stocks not reaching historical highs, and the fundamental support for bank stocks remaining intact [3][4] - The average dividend yield for A-share banks exceeds 4%, and for H-share banks, it exceeds 5%, indicating continued investment appeal in a low-interest-rate environment [4]

Group 1 - The domestic market is facing a significant issue with declining trading volume, which has fallen below 1 trillion, creating downward pressure on market sentiment [3] - The market is currently lacking overall opportunities, with only specific sectors like nuclear energy and resources continuing to rise, while other sectors show limited performance [3] - There is a liquidity pressure reflected in the rise of the overnight borrowing rate (GC001) by 10%, indicating a tightening of short-term funds as the end of the month approaches [3] Group 2 - The market is expected to maintain a volatile and oscillating process, with the national team likely to stabilize the market if significant downturns occur [4] - Current support for upward breakthroughs is insufficient, with limited short-term policy benefits and ongoing preparations for new industrial policies that may focus on high-end manufacturing and critical areas like chips and artificial intelligence [4] - The anticipated new version of industrial policy, which may emerge around mid-2025, is still in its early stages and unlikely to create immediate market impact [4]