Tianfeng Securities pointed out that the share of bank stocks in the top ten heavyweight stocks of Q2 institutions declined markedly. 19Q4 fell slightly to 7.07%, 20Q1 fell 2.4pct to 4.67%, and 20Q2 continued to decline 2.4pct to 2.47%. There was a big change in individual stocks held by institutions in 20Q2 compared to Q1. Q2 institutions prefer banks with better Q1 performance. The share of Q2 institutional holdings of Ping An Bank and Postbank declined significantly.

A sharp rise in market trading volume or an increase in the overall valuation of the financial sector. Referring to the financial stock market riots at the end of 2014, there was a marked increase in market trading volume at the time, which prompted brokerage stocks to rise. Bank stock valuations were also repaired, yet the growth rate of the GEM market lagged behind in stages during the same period. Currently, market trading volume has been effectively expanded. Banks are well-deserved hegemons in the domestic financial industry. The rise in brokerage stocks may lead to a joint increase in the valuation of the banking sector. Recently, “Caixin Weekly” reported that the Securities Regulatory Commission plans to issue brokerage licenses to commercial banks, and mixed operations are also expected to catalyze valuation recovery in the banking sector. In terms of individual stocks, we mainly promote Ping An Bank, Everbright Bank, and Industrial Bank, which have undervalued and good fundamentals, and focus on Bank of Chengdu, Bank of Changsha, Bank of Jiangsu, Bank of Changshu, Bank of Zhangjiagang, Bank of Zhangjiagang, CMB, etc.