Galaxy Securities: Positive factors continue to accumulate in the banking sector, with improvement in mid-term performance, and a turning point is expected.

Galaxy Securities research report indicates that the adjustment of the 14-day reverse repurchase operation method strengthens the position of the 7-day reverse repurchase policy rate, enhances the precision of liquidity management, and the degree of benefit for small and medium-sized banks is expected to be relatively smaller than that of large banks. The boost to consumer policies is being further implemented, the fundamentals of banks are accumulating positive factors, and medium-term performance improvement is anticipated, with a turning point on the horizon. Attention should be paid to the release of policy effectiveness, the demand and risk improvement in retail business, as well as the Fourth Plenary Session of the Twentieth Central Committee in October and the reform measures of the 15th Five-Year Plan.