CITIC Securities: Clear upward valuation space for bank zone

Jinshi data news on January 27th, CITIC Securities research report shows that the proportion of bank zone fund holdings in the fourth quarter of 2024 has increased significantly, mainly due to the continuation of the zone absolute return logic, especially after the important meeting in December 2024, the market reached a conclusion on policy games, and some funds switched to a stable configuration style. In addition, with the gradual entry of incremental insurance funds at the end of 2024 and the beginning of 2025, bank zone absolute returns and relative returns both performed well. From December 16th to December 31st, 2024, CITIC Bank Stock Index pumped by 4.9%, while Wind All A fell by 4.0% during the same period. With the strong performance of the zone, the proportion of bank stocks in the core holding stocks of active funds increased by close to 1 percentage point compared to the end of the previous quarter. Looking ahead, based on the repositioning of bank business model risk expectations and rise expectations, the advantages of bank stock net asset security and ROE stability will continue to attract allocation demand, and there is still clear upward potential for zone valuation.