Ping An Securities pointed out that currently the banking sector corresponds to a static PB of only 0.52x, the implied bad valuation rate exceeds 15%, and the margin of valuation safety is high. At the same time, both institutions and capital holdings in the north are at historically low levels. Pessimistic expectations are sufficient, and they are actively optimistic about the banking sector's valuation repair opportunities in the context of a policy shift. Individual stock recommendations: 1) High-quality retail banks whose valuations, represented by CMB and Postal Reserve, need to be repaired; 2) High-quality regional banks with superior growth than their peers (Ningbo, Chengdu, Jiangsu, Suzhou, Changsha).