Bank ETF Penghua rises nearly 1%, policy drives state-owned major commercial banks to replenish capital

How will new financial regulatory policies accelerate the transformation of banking business models?

In recent news, the State Administration of Financial Supervision held an expanded meeting on March 16, emphasizing the need to effectively enhance the industry’s high-quality development capabilities. It urged banking and insurance institutions to focus on their core businesses and develop in a differentiated manner. The policy promotes reducing the size of local small and medium financial institutions while improving quality and optimizing their layout. It also aims to continuously regulate industry order and thoroughly rectify disorderly competition. The policy encourages large state-owned commercial banks to replenish their capital and explores diversified methods to supplement the capital of small and medium financial institutions.

China Galaxy Securities pointed out that the 14th Five-Year Plan emphasizes accelerating the development of a strong financial nation, adhering to risk prevention, strengthened regulation, and promoting high-quality growth. It aims to build a modern financial system with Chinese characteristics, including improving the central bank system, establishing a sound macroprudential management framework, developing five major areas, deepening capital market investment and financing reforms, optimizing the financial institution system, strengthening financial regulation comprehensively, and constructing a risk prevention and resolution system. Financial reform has entered a new stage of coordinated development and security, with a focus on supporting the high-quality development of the real economy through high-level self-development. This will foster a more demand-driven, consumption-led, and internally driven economic growth model, profoundly reshaping the banking industry’s operating environment, business structure, profit models, and valuation system, thereby accelerating the transformation of banking business models.

As of 10:59 on March 17, 2026, the CSI Bank Index (399986) increased by 0.85%. Among its constituent stocks, China CITIC Bank rose by 1.98%, Nanjing Bank by 1.59%, Huaxia Bank by 1.54%, Chengdu Bank by 1.45%, and Ruifeng Bank by 1.42%. The Bank ETF Penghua (512730) rose by 0.80%, hitting six consecutive days of gains. The latest price is 1.65 yuan.

The Penghua Bank ETF closely tracks the CSI Bank Index, which reflects the overall performance of securities from different industries within the CSI All Share Index. It provides investors with analytical tools by classifying the index’s sample securities into 11 primary industries, 35 secondary industries, over 90 tertiary industries, and more than 200 quaternary industries based on CSI industry classifications. All securities within each industry level are used as samples to compile the industry indices, forming the CSI All Share Industry Index.

Data shows that as of February 27, 2026, the top ten holdings of the CSI Bank Index (399986) were 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 China Minsheng Bank, collectively accounting for 63.76% of the total index weight.