Tianfeng Securities: The core logic of the current round of bank stock rally is expected to continue to support the market and sustain the rally.

TF Securities research report believes that valuation repair driven by capital will be the core logic of this round of bank stock market, and this logic is expected to continue to support the market. Specifically: On one hand, in the background of low interest rates and asset shortage, the advantages of high dividends and quasi-fixed income of banks are highlighted. On the other hand, continuous inflow of incremental funds drives a significant valuation repair in the banking sector. Looking ahead, under the release of policy dividends, the entry of insurance funds into the market, increased allocation of active funds, and expansion of passive funds may jointly bring stable incremental funds to bank stocks, enhancing the sustainability of the valuation repair market. TF Securities focuses on recommending Chengdu Bank and Changshu Bank among high-quality regional small and medium-sized banks; Among state-owned banks, they recommend Agricultural Bank of China, Bank of China, and Postal Savings Bank of China.