Rising against the trend! Huabao’s 10-billion-yuan Bank ETF (512800) is approaching the six-month line—could a turning point be coming soon? Agricultural Bank of China is up more than 2%

On April 2nd, the A-shares opened lower in the morning, with the three major indices collectively drifting into the red, while the banking sector defied the trend and rose. The Baoshang (512800) top-flow bank ETF valued at hundreds of billions is currently up 0.5% in the intraday price, approaching the half-year moving average. State-owned large banks performed well, with Agricultural Bank up over 2%, and China Construction Bank, Postal Savings Bank, and Bank of China up over 1%, while Huaxia Bank, CITIC Bank, and Ping An Bank led the gains.

In the just-concluded March, Middle Eastern geopolitical risks disturbed market sentiment, causing banks to frequently perform counter to the market. The CSI Bank Index increased by a total of 3.83% over the period, ranking first among all CSI secondary industry indices. During the same period, the Shanghai Composite Index, ChiNext Index, and Shenzhen Component Index fell by 6.51%, 3.79%, and 7.02%, respectively, with the banking sector outperforming the Shanghai Composite by an excess of 10.34%.

Note: The CSI Bank Index’s annual gains and losses over the past five full years are: 2025, 6.79%; 2024, 34.71%; 2023, -7.27%; 2022, -8.78%; 2021, -4.41%. The composition of index constituents is adjusted periodically according to the index compilation rules. Past performance does not predict future results.

Huafu Securities states that the banking sector’s undervalued valuation base remains unchanged. Although valuation recovery occurred from 2024 to 2025, the sector is now closer to the middle of the revaluation process rather than the end. The upward drivers will expand from a single dividend logic to dividend defense, fundamental repair, and structural growth, with excess returns likely coming from the steady revaluation of high-dividend state-owned banks and the growth premium return of quality city commercial banks. Policy support and stable interest spreads are expected to jointly sustain the banking sector.

Changjiang Securities also notes that, in an environment where market risk appetite systematically declines, the defensive value of bank stocks, which has been adjusted for three quarters, is prominent. Currently, the sector is near the relative lows seen in early October last year and late January this year, offering a margin of safety, with low PB-ROE valuation, improving earnings trends, and gradually digesting pressure from index funds and other capital flows.

Bank ETF (512800) and its linked 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 Bank ETF (512800) has a latest scale of nearly 12 billion yuan, with an average daily trading volume exceeding 800 million yuan since 2025, making it the largest and most liquid among the 10 banking ETFs in A-shares.

Data source: Shanghai and Shenzhen Stock Exchanges, etc.

ETF fee-related notes: When investors subscribe or redeem fund units, the agent may charge a commission of up to 0.5%, including related fees charged by stock exchanges, registrars, etc. Linked fund fee notes: Huabao CSI Bank ETF Linked Fund (A class) has a subscription fee (front-end) of 1,000 yuan per transaction for subscriptions of 2 million yuan or more, 0.6% for 1-2 million yuan, and 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 Linked Fund (C class) charges no subscription fee, with a redemption fee of 1.5% if held less than 7 days, 0% otherwise, and a sales service fee of 0.4%.

Risk reminder: The bank ETF passively tracks the CSI Bank Index, which was launched 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 constituents shown are for display only; individual stock descriptions do not constitute investment advice and do not reflect 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 form of statement) 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 fund manager 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, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest cautiously.

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