A research report from CITIC SEC indicates that, following significant capital outflows since the start of the year, the average static dividend yield for A-share banks is currently estimated at approximately 4.3%, with some large-cap stocks offering yields above 5%, and the average static price-to-book ratio stands at 0.60x.

Looking ahead to 2026-2027, the banking sector is entering the tail end of its risk cycle, with the first derivative of ROE already showing improvement. It is projected that the industry's absolute ROE will stabilize within the 8% to 9% range over the next two years, which should support a re-rating of the sector's valuation.

The second half of this year is expected to see a revaluation of banking stocks as "high-certainty equity assets," presenting significant potential for absolute returns.

In terms of individual stock selection, the report recommends companies with superior business models, optimistic returns on equity, and those entering a stable growth cycle.