CITIC Securities: Absolute returns of bank stocks are becoming apparent.

The research report from CITIC Securities indicates that since the high point in July, the CITIC Bank stock index has experienced a cumulative pullback of nearly 13%, with a pullback of over 4% last week. Currently, the arithmetic average static dividend yield of A-share listed banks has risen to 4.3%, while the arithmetic average static PB level has fallen to 0.61x, implying a higher potential equity return space. The market style and capital market volatility since the second quarter have had a two-way impact on sector trends, and starting last week, the impact of the capital market has been stronger than the market style, providing an opportunity for allocation-based funds. Whether based on the continuation of the sector in the slow bull market or the under-allocated space for long-term funds, the absolute return space for bank stocks is beginning to show, and it is recommended that investors actively allocate.