CITIC Securities Banking Industry's Investment Outlook for 2026: Fundamentals and market factors are jointly guiding, stability + high dividend attributes are more favored.

CITIC Securities Bank Industry 2026 Investment Strategy Outlook: The combination of funding and market factors guides the preference for steady + high dividend attributes. In 2025, the macroeconomic situation continues to show a weak recovery trend, and the fundamental performance of the banking industry has not yet shown significant improvement, with the high dividend strategy continuing to be interpreted. In terms of funding, long-term funds from insurance funds, national teams, and public funds still have strong incentives to increase their positions in banks. The domestic banking fundamentals continue to bottom out, with the demand for configuration based on bottom-line thinking, high confidence, and high win rate continuing to increase the safety margin. The economic environment has not yet shown strong signs of a robust recovery, and we continue to favor high dividend yield strategies, while also focusing on undervalued assets with potential changes.