Investment Rating - The report suggests that the banking sector is currently in the "mid-stage" of a bull market, with the CITIC Bank Index expected to recover its Price-to-Book (PB) ratio from 0.5X in October 2022 to around 0.8-0.9X [8][17]. Core Insights - The CITIC Bank Index has been on an upward trend since November 2022, marking a technical bull market, while the Shanghai Composite Index experienced a narrow fluctuation from November 2024 to June 2025 [2][17]. - Historical analysis of bull markets in sectors such as liquor, new energy vehicles, and coal reveals that significant factors driving these markets include macro narratives and incremental capital [8][17]. - The banking sector benefits from a narrative of "asset scarcity" and potential incremental capital from insurance and public funds, indicating a favorable outlook for continued growth [8][17]. Summary by Sections Liquor Industry (2016-2021) - The liquor market experienced a dual-phase growth, with the first phase (January 2016 to June 2018) driven by wealth effects from rising real estate prices and consumer upgrades, leading to increased volume and price [2][4]. - The second phase (November 2018 to February 2021) saw market confidence boosted by government meetings and foreign capital inflows, resulting in significant valuation expansion [4][31]. - The CITIC Liquor Index rose by 302% during this period, with net profit for constituent stocks increasing by 36.7% [38][39]. New Energy Vehicles (2019-2021) - The new energy vehicle sector's growth was characterized by two phases: the first (November 2019 to January 2021) was marked by global industry resonance and policy support, leading to substantial valuation increases [5][42]. - The second phase (March 2021 to November 2021) saw rapid penetration rates and increased public fund allocations, with the index rising by 75.4% during this period [56][61]. - The index's PE ratio increased by 259.9%, despite a decline in net profit [52][56]. Coal Industry (2020-2024) - The coal sector's growth from March 2020 to September 2022 was driven by supply-demand imbalances and liquidity resonance, resulting in a significant increase in profitability [7][8]. - From June 2023 to June 2024, the sector benefited from a decline in long-term bond yields, enhancing its appeal as a high-dividend asset, leading to notable valuation improvements [7][8]. - The coal index rose by 27.5% during this latter period, primarily due to significant valuation increases [29][30]. Banking Sector (2022-Present) - The banking sector's bull market is supported by a macro narrative of asset scarcity and ongoing capital inflows from insurance and public funds [8][17]. - The banking sector's performance is compared to traditional industries like liquor and coal, suggesting that it may have similar growth potential in terms of duration and valuation expansion [8][17]. - The report anticipates that the banking sector's Price-to-Earnings (PE) ratio has increased by approximately 75% since October 2022, indicating room for further growth compared to other sectors [8][17].