Investment Rating - The report maintains a "Recommended" rating for the industry, indicating a positive outlook for the sector's fundamentals [1]. Core Insights - The report highlights that a significant amount of deposits are maturing annually, with estimates of 83 trillion, 91 trillion, and 105 trillion for the years 2023, 2024, and 2025 respectively, suggesting that liquidity supports price increases in capital markets [4]. - It notes that the migration of household deposits to capital markets is likely a result of market sentiment rather than a fundamental shift in investment philosophy, emphasizing the need for rational optimism [4]. - The report argues that for the capital market to achieve stable returns, it should focus less on short-term bullish narratives and more on enhancing consumer confidence to improve corporate performance and return on equity (ROE) [4]. - It discusses the potential wealth effect of a bull market on consumption and economic growth, stressing that short-term market fluctuations could exacerbate wealth inequality and reduce average consumption tendencies [4]. - The report suggests that the large volume of household deposits should primarily serve as a consumption potential before being viewed as liquidity potential for capital markets [4]. - It emphasizes that if the market overly attributes deposit migration as a reason for a bull market, it could lead to unpredictable micro liquidity conditions, which may not be beneficial for long-term market development [4]. Summary by Sections Industry Scale - The industry comprises 41 listed companies with a total market capitalization of 11,078.3 billion and a circulating market capitalization of 10,489.1 billion [1]. Performance Metrics - The absolute performance over 1 month, 6 months, and 12 months is -6.5%, 11.6%, and 33.3% respectively, while the relative performance is -11.1%, 4.9%, and 7.6% [3]. Macro Liquidity Outlook - The report maintains that without additional fiscal budget increases, the current fiscal expansion's impact will begin to wane, with social financing growth likely peaking soon [5]. - It indicates that the liquidity in the interbank bond market may become unstable due to the shift towards shorter-term deposits and the potential for increased volatility in non-bank deposits [5]. Investment Recommendations - The report suggests that the short-term adjustment phase is nearing its end, with an upcoming window for excess returns, while the mid-term market outlook remains positive [5]. - It highlights that the banking sector's price-to-earnings (PE) ratio is approximately 7 times, significantly lower than the overall market PE of about 21 times, indicating a favorable investment opportunity [5].