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]

Group 1 - The banking sector is experiencing a strong performance, with the AH Preferred ETF (517900) seeing a net inflow of over 260 million since the beginning of the year, marking a 275.96% growth in scale, reaching a historical high [1] - Insurance capital has significantly increased its holdings in bank stocks, with a total of 27.821 billion shares valued at 265.78 billion yuan as of the end of Q1, and 7 out of the top 10 heavy stocks being bank stocks [1] - The banking industry currently has the lowest price-to-book ratio among major sectors, with most banks trading below a price-to-book ratio of 1 and an average price-to-earnings ratio of around 7 [1] Group 2 - The AH Preferred ETF (517900) has a dividend yield of 6.51% as of the end of May, reflecting a strategy of selecting undervalued stocks in the AH market [2] - The ETF has seen a cumulative increase of over 47% in the past year and an annualized return of over 14% since its inception [2] - The latest net value of the ETF is 1.5627, with a recent performance showing a weekly increase of 1.35% and a monthly increase of 5.80% [3]