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]

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]