--- title: "Bank ETF Penghua (512730) rose over 1%, institutions are optimistic about the asset expansion main line + real estate improvement main line" type: "News" locale: "en" url: "https://longbridge.com/en/news/281128782.md" description: "Today, the banking sector surged strongly, with the Penghua CSI Banks ETF (512730) rising over 1%. As of March 29, 22 banks have disclosed their 2025 annual reports, with overall revenue and profit growth in line with expectations. Institutions are optimistic about the banking performance in 2026, believing that improvements in fundamentals, high dividend rates, and a preference for defensive sectors are the reasons for the rise. It is expected that asset expansion and improvements in real estate will become the main investment themes. The CSI Bank Index rose by 1.13%, with multiple bank stocks following suit" datetime: "2026-03-31T05:29:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/281128782.md) - [en](https://longbridge.com/en/news/281128782.md) - [zh-HK](https://longbridge.com/zh-HK/news/281128782.md) --- # Bank ETF Penghua (512730) rose over 1%, institutions are optimistic about the asset expansion main line + real estate improvement main line Today, the banking sector surged strongly. As of March 29, 22 banks have disclosed their 2025 annual reports/quick reports. Overall, the annual reports meet the expectations of "stable revenue and gradually improving profit growth." The core drivers of revenue improvement are twofold: stable prices with steady volume growth, and improved net interest income; the capital market is recovering, leading to a general rebound in non-interest income. Based on this, institutions predict that listed banks will continue the trend of revenue and profit growth recovery in 2026, highlighting the stability of profitability. Institutions point out that the rise in the sector is attributed to three main reasons: 1) Fundamentals: Bank profits continue to recover in the 2025 annual reports, with revenue up 1.4% (9M25: +0.8%) and net profit attributable to shareholders up 1.6% (9M25: +1.3%); against a backdrop of bottoming interest margins and stable balance sheet expansion, revenue is expected to improve significantly in 2026, supporting stable performance. 2) On the dividend front, state-owned banks maintain a high dividend payout ratio of over 30%, while joint-stock banks have generally increased their payouts, continuing to highlight the sector's high dividend advantage. 3) In terms of style, the market is in a period of oscillation and adjustment, with funds favoring defensive sectors. Institutions emphasize that the current banking sector exhibits prominent characteristics: "the impact of index outflows has come to an end, public fund holdings show clear bottom characteristics, high dividends offer good value, and performance is steadily improving." In the face of increasing external uncertainties and unclear main lines, banks provide both safety margins and valuation rebound potential. Based on this, two main lines are favored for banks to break through valuations: 1) Asset expansion main line: high-quality city commercial banks that achieve asset expansion under marginal improvement in fundamentals. 2) Real estate improvement main line: joint-stock banks that benefit first from the easing of new pressures under strengthened real estate policies. As of March 31, 2026, at 13:15, the China Securities Banking Index (399986) surged 1.13%. Component stocks such as Bank of China rose 4.06%, Agricultural Bank of China rose 3.70%, Huaxia Bank rose 2.36%, and stocks like Shanghai Pudong Development Bank and Qingdao Bank also followed suit. The banking ETF Penghua (512730) rose 1.04%, with the latest price reported at 1.65 yuan. The banking ETF Penghua closely tracks the China Securities Banking Index, reflecting the overall performance of securities from different industry companies within the China Securities All Index sample. It provides investors with analytical tools, categorizing the China Securities All Index sample into 11 primary industries, 35 secondary industries, over 90 tertiary industries, and more than 200 quaternary industries. The index is compiled using all securities entering each primary, secondary, tertiary, and quaternary industry as samples. Data shows that as of February 27, 2026, the top ten weighted stocks in the China Securities Banking Index (399986) are China Merchants Bank, Industrial Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of Communications, Jiangsu Bank, Shanghai Pudong Development Bank, Ping An Bank, Ningbo Bank, and Minsheng Bank, with the top ten weighted stocks accounting for a total of 63.76% ### Related Stocks - [512730.CN](https://longbridge.com/en/quote/512730.CN.md) ## Related News & Research - [12:49 ETJulia B. 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