Huatai Securities: Banking Sector Remains a Stable Investment Choice Amid Resilient Performance

36Kr reports that Huatai Securities' research outlook for the banking sector in 2027 notes that, since the start of this year, the banking sector has risen against the market trend despite volatility. With external uncertainties persisting and demand for stable returns increasing, the sector's combination of performance resilience and sustained dividend payouts supports ongoing valuation repair. The banking industry is undergoing a transition period, shifting from scale-driven operations to improvements in quality and efficiency; asset structure, pricing, and shareholder returns are expected to improve, highlighting strong performance resilience. Amid low interest rates and capital adequacy requirements, demand for insurance funds and brokerages' OCI allocations continues, while active fund positions remain low with room for increased allocation. Equity ETFs have shifted to net inflows, creating synergy between long-term capital and passive allocation. Currently, the banking sector's dividend yield (TTM) is approximately 4.31%, offering advantages over government bonds, the broader A-share market, and other high-dividend industries. Huatai Securities believes the banking sector retains stable investment value and recommends focusing on state-owned large banks with H-shares that show steady earnings and increased dividends, as well as high-quality banks with greater elasticity.