Against the market trend, 6 consecutive gains! Huabao Fund's 10 billion bank ETF (512800) rises nearly 1% again. Fund manager: The banking sector currently has multiple positive catalysts.

On March 17, the banking sector continued its strong performance, with the top-flow bank ETF (512800) rising nearly 1% intraday, marking six consecutive days of gains. Most bank stocks in the sector also advanced, with CITIC Bank up over 3%, Industrial and Commercial Bank of China and Bank of China up nearly 2%, and Nanjing Bank, Agricultural Bank of China, Postal Savings Bank, and others up over 1%.

Recently, the banking sector’s counter-trend performance has attracted investor attention. Data from the Shanghai Stock Exchange shows that the bank ETF (512800) experienced a net inflow of 196 million yuan over the past two days.

Fund manager Feng Chengcheng of the bank ETF (512800) recently stated that the current adjustment in the banking sector is quite sufficient. Whether from the perspective of fundamental certainty and stability, dividend value, or defensive style, there are positive factors triggering the sector.

Regarding market style, the ongoing conflict between the U.S. and Iran continues longer than expected, leading to a decline in market risk appetite. This forces funds to seek certainty, making risk-averse assets a relatively better allocation choice. Especially for banks, which are in a period of earnings recovery, dividend assets are in high demand.

Fundamentally, the year-over-year growth rate of bank revenues in each quarter of 2025 is significantly better than in 2023 and 2024, with many companies’ performance reports showing revenue growth exceeding expectations. As revenue growth pressures for most banks ease, the turning point for bank income is more certain. It is expected that the overall performance of the banking sector will remain stable and improve in 2026 compared to the past two years.

From a liquidity perspective, the demand for reducing holdings of broad-based ETFs from the third quarter of 2025 through January this year has weakened, easing liquidity pressure on the banking sector. There is a self-reinforcing force to restore, and a reversal logic exists in trading styles, with current positions having certain safety margins.

The bank ETF (512800) and its associated funds (Class A: 240019; Class C: 006697) passively track the CSI Bank Index, which includes 42 listed banks in A-shares, making it an efficient investment tool for tracking the overall banking sector trend. The latest size of the bank ETF (512800) exceeds 11 billion yuan, with an average daily trading volume over 800 million yuan since 2025, making it the largest and most liquid among the 10 bank ETFs in A-shares.

Data sources: Shanghai and Shenzhen Stock Exchanges, etc.

ETF fee-related notes: When investors subscribe or redeem fund shares, the agent may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges, registrars, etc. Regarding the associated fund fees: Huabao CSI Bank ETF (A) subscription fee (front-end) is 1,000 yuan per transaction for subscriptions of 2 million yuan or more; 0.6% for 1-2 million yuan; 1% for less than 1 million yuan. Redemption fee is 1.5% if held less than 7 days, 0.5% for 7-180 days, 0.25% for 180 days to 1 year, and 0% for over 1 year, with no sales service fee. Huabao CSI Bank ETF © does not charge a subscription fee; redemption fee is 1.5% if held less than 7 days, 0% if held 7 days or more; sales service fee is 0.4%.

Risk warning: The bank ETF passively tracks the CSI Bank Index, which was established on December 31, 2004, and published on July 15, 2013. The index’s constituent stocks are adjusted periodically according to the index rules. Past performance does not predict future results. The index components shown are for display only; individual stock descriptions are not investment advice and do not represent holdings or trading activity of any fund managed by the manager. The risk level of this fund, as assessed by the fund manager, is R3—medium risk, suitable for balanced (C3) and above investors. All information in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any other statements) is for reference only. Investors are responsible for their own investment decisions. The views, analysis, and forecasts in this article do not constitute investment advice and the author is not responsible for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance does not guarantee future results. The performance of other funds managed by the fund manager does not guarantee the performance of any specific fund. Invest cautiously.

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