Core Viewpoint - The report from China Merchants Securities indicates that as public fund reform plans are gradually implemented, the constraints of performance benchmarks will strengthen, leading to an expected increase in active fund holdings of bank stocks [1] Group 1: Market Trends - The mid-term market for banks is not yet over, as the current allocation of bank stocks by public funds is expected to rise to an acceptable range of 8%-10%, while the current under-allocation is around 5%-7% [1] - The ETF tracks the Bank AH Preferred Index, which is an upgraded version of the CSI Bank Index, and has historically outperformed traditional indices by 2% in annualized returns [1] Group 2: Investment Opportunities - The new tax policy on bond interest is expected to stimulate demand for high-dividend assets, combined with the banking sector's price-to-book ratio of 0.7 and a dividend yield exceeding 4%, highlighting the long-term investment value [1] - Investors can access the market through linked funds (Class A: 016572; Class C: 016573) [1]

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 banking sector has shown strong performance, with significant inflows into bank-related ETFs and a notable increase in their market capitalization, indicating a positive outlook for the industry. Group 1: Market Performance - As of June 23, bank stocks have strengthened, with the only cross-listed bank ETF (517900) surging by 1.39%, reaching a historical high for the 16th time this year, with a trading volume of approximately 59 million, marking a three-year peak [1] - The fund has seen continuous net inflows for 13 days as of June 20, with a year-to-date growth in scale of 320.80%, also a historical high [1] - Longjiang Securities noted that since the second quarter, bank stocks have consistently risen, with several individual stocks reaching new highs, although the trading congestion indicator has not yet reached the highs of the past two years [1] Group 2: Investment Trends - The current market sentiment reflects a reluctance to sell existing bank stock holdings, attributed to the sector being the cheapest in terms of valuation and a clearer upward logic [1] - The market is increasingly recognizing the establishment of a significant risk bottom in the banking sector's fundamentals, with various factors such as high dividends, passive fund expansion, and under-allocation by active funds driving the upward trend [1] - Institutional investors, particularly insurance funds, are facing asset scarcity pressures and are in a continuous accumulation phase for stable dividend-paying bank stocks, as evidenced by the increasing holdings of H-shares of state-owned and joint-stock banks by southbound funds [1] Group 3: Fund Management Insights - Since May, public funds have been optimistic about increasing their positions in bank stocks, with a shift in focus from dividend yield to factors such as earnings growth, governance advantages, regional economy, and long-term logic [2] - The bank AH preferred ETF (517900) had a dividend yield of 6.51% as of the end of May, reflecting a rotation strategy in the AH market that prioritizes undervalued stocks [2] - Investors can access this market through linked funds (Class A: 016572; Class C: 016573) [2]

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]

Group 1 - The banking sector has shown strength recently, with stocks like China CITIC Bank and Chengdu Bank reaching historical highs. The AH Preferred ETF (517900) has seen continuous net inflows for seven weeks, totaling approximately 230 million since the beginning of the year, leading to a year-to-date growth of 238.69% in scale [1] - The banking sector's return on equity (ROE) remains above 10%, indicating a strong performance compared to other industries, despite a marginal decline in overall operating performance in Q1 due to macroeconomic conditions and market volatility [1] - The outlook for the banking sector remains positive, with expectations of a moderate recovery in credit issuance driven by policies aimed at expanding domestic demand, and a favorable environment for net interest margins due to reduced pressure on banks' funding costs [1] Group 2 - The name of the fund "Bank ETF Preferred" will change to "Bank AH Preferred ETF" starting June 16, 2025. The fund's index, "Bank AH," had 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 fund has shown significant performance metrics, with a one-year increase of 47.16% and an annualized return of 14.49% since inception [3]

Group 1 - The banking sector has shown strong performance recently, with the only cross-AH bank ETF (517900) rising by 0.59% and accumulating an 18.27% increase year-to-date [1] - The ETF has seen active trading with a turnover rate of 14.54% and a trading volume of approximately 40 million, which is nearly a 100% increase compared to the previous day [1] - As of June 10, the fund has experienced a continuous net inflow of funds for five days, totaling around 57 million, with both scale and shares reaching historical highs [1] Group 2 - According to Huatai Securities, the performance of AH banks is expected to stabilize in 2025, with a decline in deposit rates alleviating pressure on interest margins [1] - The first quarter of 2025 is anticipated to be the low point for AH bank performance, with gradual recovery expected thereafter due to the impact of repricing and bond market fluctuations [1] - CITIC Securities highlights that the long-term investment logic in the banking sector is supported by an increase in insurance fund equity asset allocation and the high-quality development of public funds [2] Group 3 - The core logic for bank stock investment in 2025 is the revaluation of net assets, driven by macro policies aimed at reducing systemic risks in the banking sector [2] - The dividend yield for the "Bank AH" index was reported at 6.51% as of the end of May, reflecting a rotation strategy in the AH market that favors undervalued stocks [2] - Investors can access the banking sector through connection funds (Class A: 016572; Class C: 016573) [2]