Xinhua News Agency, May 30, CITIC Securities Research newspaper pointed out that the banking sector has picked up and the allocation is timely. The current average valuation of the sector is less than 0.6 x PB, only in the 27% quantile of the past three years, taking into account the driving force of warmer performance and the expected repair of the economy, the sector can be actively allocated. In terms of individual stocks, it is suggested to select stocks by dichotomy: one is the valuation repair logic, which corresponds to the performance repair drive of high-quality companies; the other is the valuation improvement logic, corresponding to the valuation space brought about by the asset quality cycle and economic stabilization. in addition, we can pay attention to the sustainability of the market catalyzed by the concept of special valuation, especially the promotion of top-down policies that exceed expectations.