Core Viewpoint - A-shares have returned to 3600 points, with bank stocks experiencing a second consecutive day of gains, driven by the announcement of a tax on bond interest income, which may lead institutional investors to seek alternative high-dividend assets like bank stocks [1] Group 1: Market Performance - A-shares bank stocks have seen significant increases, with Pudong Development Bank rising over 4% and Agricultural Bank of China rising over 2%, reaching new highs [1] - The Tianhong Bank ETF (515290) increased by 1.5% as a result of the bank stock rally [1] - The banking sector had a decline in July, with the China Securities Bank Index dropping over 7% from July 11 to July 31, indicating potential for a rebound [1] Group 2: Tax Policy Impact - The announcement from two departments to resume the collection of value-added tax on interest income from newly issued government bonds, local government bonds, and financial bonds starting August 8 is expected to have a slight negative impact on bank profits, according to UBS [1] - The tax on new bonds may prompt insurance capital, which is a significant holder of bonds, to seek alternative investments, potentially increasing demand for high-dividend stocks such as bank shares [1] Group 3: ETF and Fund Details - The Tianhong Bank ETF tracks the China Securities Bank Index and includes 42 listed banks in A-shares, with a composition of 25.6% large state-owned banks, 44.4% joint-stock banks, 24.1% city commercial banks, and 5.9% rural commercial banks [2] - The latest scale of the Tianhong Bank ETF is 5.747 billion yuan, with a significant increase of 78.2 million shares year-to-date, positioning it among the top in its category [2]