Market style rebalancing, banks demonstrate defensiveness! Billion-dollar bank ETFs like Huabao attract capital attention

On March 26, the A-shares saw a volume reduction and a pullback, with the Shanghai Composite Index falling below 3900 points. The banking sector closed up against the market trend, showcasing its defensive characteristics. The Billion Bank ETF Huabao (512800) saw an intra-day price increase of 0.25%, achieving a steady three-day gain, and standing above the 10-day moving average. Most individual stocks rose, with Yunnong Commercial Bank, CITIC Bank, Shanghai Rural Commercial Bank, and Industrial and Commercial Bank of China rising over 1%.

Currently, the global geopolitical situation is tense, and market volatility is increasing, making the banking sector’s defensive attributes prominent, attracting capital attention. Data from the Shanghai Stock Exchange shows that the Bank ETF (512800) has experienced a net inflow of funds totaling 131 million yuan over the past three days.

Guosheng Securities points out that style balance combined with earnings season presents investment opportunities for bank stocks. In terms of performance, listed banks are gradually disclosing their earnings reports and annual reports, with most banks showing stabilization and improvement in revenue and maintaining stable asset quality. On the trading front, the large net outflows from index funds at the beginning of the year have come to a temporary halt, while the capital market’s risk appetite is being rebalanced due to geopolitical conflicts and the price trends of related commodities. The banking sector, as an important heavyweight and stabilizer, has seen half of the targets’ dividend yields recover to over 4.5%, highlighting its current allocation value.

The fund manager of the Bank ETF (512800), Feng Chen Cheng, believes that the banking sector has undergone sufficient prior adjustments and possesses a safe margin; the current market’s declining risk appetite favors banking assets with certainty in dividends. Additionally, the revenue growth pressure for the banking sector is improving by 2026, and the stabilization of net interest margins is driving better performance, with asset quality indicators remaining stable and controllable, overall presenting positive factors triggered by the market.

The Bank ETF (512800) and its linked funds (Class A: 240019; Class C: 006697) passively track the CSI Bank Index, encompassing 42 listed banks in A-shares. It is an efficient investment tool for tracking the overall performance of the banking sector. The latest size of the Bank ETF (512800) is over 12 billion yuan, with an average daily trading volume of 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.

Institutional viewpoints source: Guosheng Securities 20260322 “Style balance combined with earnings season presents investment opportunities for bank stocks.”

ETF fee-related notes: Investors purchasing or redeeming fund shares may incur a commission charged by the purchasing and redemption agency of no more than 0.5%, which includes fees charged by securities exchanges, registration agencies, and others. Linked fund fee-related notes: The subscription fee rate for the Huabao CSI Bank ETF linked fund (Class A) is 1000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) and above, 0.6% for amounts between 1 million yuan (inclusive) and 2 million yuan, and 1% for amounts below 1 million yuan; the redemption fee rate is 1.5% for holding periods of less than 7 days, 0.5% for holding periods between 7 days (inclusive) and 180 days, 0.25% for holding periods between 180 days (inclusive) and 1 year, and 0% for holding periods of 1 year (inclusive) or more; no sales service fee is charged. The Huabao CSI Bank ETF linked fund (Class C) does not charge a subscription fee, and the redemption fee rate is 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days (inclusive) and above; the sales service fee is 0.4%.

Risk warning: The Bank ETF passively tracks the CSI Bank Index, with the base date being December 31, 2004, and released on July 15, 2013. The composition of the index constituents is adjusted in a timely manner according to the index compilation rules, and past performance does not indicate future performance. The constituent stocks mentioned in this text are for display purposes only, and the descriptions of individual stocks do not constitute any form of investment advice, nor do they represent the holdings information and trading trends of any funds managed by the manager. The fund manager assesses this fund’s risk level as R3 - medium risk, suitable for balanced (C3) and above investors. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any form of expression) is for reference only, and investors must take responsibility for any investment decisions made independently. Furthermore, any opinions, analyses, and forecasts contained in this article do not constitute any form of investment advice to the reader, nor does it bear any responsibility for direct or indirect losses caused by the use of this content. Fund investments carry risks; the past performance of the fund does not represent its future performance, and the performance of other funds managed by the fund manager does not guarantee the performance of the fund, and caution is advised in fund investment.