Core Viewpoint - The Hong Kong dividend assets are experiencing a correction, but the trend of capital inflow continues, driven by the demand for high-dividend assets from insurance companies under new accounting standards [1][2]. Group 1: Market Performance - As of November 21, the Hong Kong Stock Connect Dividend ETF (520900) fell by 1.74% with a trading volume of 33.55 million yuan [1]. - Over the past 10 days, the net inflow into the ETF was 104 million yuan, and over the past 20 days, it was 150 million yuan, with the latest fund size reaching 1.881 billion yuan [1]. Group 2: Fund Inflows and Trends - From October 13 to November 14, the ETF has seen continuous growth in shares for five consecutive weeks, with the latest share count at 1.728 billion [1]. - The demand for high-dividend stocks is expected to increase significantly as insurance companies switch to new accounting standards by 2026, with an estimated annual allocation of 250 to 500 billion yuan for high-dividend assets by five A-share listed insurance companies by 2027 [1]. Group 3: Investment Characteristics - The Hong Kong dividend assets exhibit a "defensive" characteristic in volatile markets, with a focus on high-dividend state-owned enterprises [2]. - The ETF tracks the CSI National New Hong Kong Stock Connect Central Enterprise Dividend Index, which emphasizes high-dividend state-owned enterprises, with the top three sectors being oil and petrochemicals (29.7%), telecommunications (21.2%), and transportation (13.5%) [2]. Group 4: Fund Details - The Hong Kong Stock Connect Dividend ETF (520900) was established on June 26, 2024, with a management fee of 0.50% and a custody fee of 0.10% [3]. - The current fund managers are Huo Huaming and Lv Xin, with returns of 12.68% and 26.76% respectively during their management periods [3]. Group 5: Top Holdings - The top holdings of the ETF include China Petroleum (10.86%), China Mobile (10.32%), and China Shenhua (9.70%), with significant market values for each [4]. - Investors focused on sustainable dividends and quality earnings can consider the ETF for a balanced exposure to high-dividend stocks in the Hong Kong market [4].

Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (72.33%), Power Assets Holdings (69.46%), and GCL-Poly Energy Holdings (69.45%) [1][2] - Alibaba (W) saw the largest increase in holding amount over the last five trading days, with an increase of 88.38 billion, followed by Xiaomi Group (22.55 billion) and Xpeng Motors (15.37 billion) [1][2] - The largest decreases in holding amounts were observed in the Tracker Fund of Hong Kong (-25.69 billion), Hang Seng China Enterprises Index ETF (-16.22 billion), and China Shenhua Energy (-9.29 billion) [1][3] Hong Kong Stock Connect Holding Ratios - China Telecom (00728) holds 100.39 million shares, representing 72.33% of its total [2] - Power Assets Holdings (01635) holds 3.71 million shares, representing 69.46% [2] - GCL-Poly Energy Holdings (01330) holds 2.81 million shares, representing 69.45% [2] - Other notable companies include Huitian International Investment (68.37%) and COSCO Shipping Energy Transportation (68.31%) [2] Recent Increases in Holdings - Alibaba (W) increased by 88.38 billion, with a share increase of 57.1 million [2] - Xiaomi Group (W) increased by 22.55 billion, with a share increase of 59.8 million [2] - Xpeng Motors (W) increased by 15.37 billion, with a share increase of 18.8 million [2] - Other companies with notable increases include China Construction Bank (11.86 billion) and Semiconductor Manufacturing International Corporation (11.37 billion) [2] Recent Decreases in Holdings - Tracker Fund of Hong Kong decreased by 25.69 billion, with a share decrease of 98.8 million [3] - Hang Seng China Enterprises Index ETF decreased by 16.22 billion, with a share decrease of 17.3 million [3] - China Shenhua Energy decreased by 9.29 billion, with a share decrease of 22.9 million [3] - Other companies with significant decreases include Agricultural Bank of China (-6.39 billion) and WuXi Biologics (-6.06 billion) [3]

Key Points - The top three companies with net inflows of southbound funds are Alibaba-W (09988) with 3.296 billion, XPeng Motors-W (09868) with 1.147 billion, and Xiaomi Group-W (01810) with 0.853 billion [1][2] - The top three companies with net outflows of southbound funds are Yingfu Fund (02800) with -0.559 billion, China Life (02628) with -0.427 billion, and China National Offshore Oil Corporation (00883) with -0.368 billion [1][2] - In terms of net inflow ratio, ICBC South China (03167) leads with 100.00%, followed by Xiaocai Garden (00999) with 74.08%, and Qingdao Bank (03866) with 67.42% [1][3] - The companies with the highest net outflow ratios include Q Tech (01478) at -58.31%, China National Heavy Duty Truck Group (03808) at -53.04%, and Nexperia (01316) at -43.99% [1][4] Net Inflow Rankings - Alibaba-W (09988) had a net inflow of 3.296 billion, representing a 20.59% increase in its closing price to 154.600 [2] - XPeng Motors-W (09868) saw a net inflow of 1.147 billion, with a 25.58% increase in its closing price to 85.950 [2] - Xiaomi Group-W (01810) experienced a net inflow of 0.853 billion, with a 9.75% increase in its closing price to 40.780 [2] Net Outflow Rankings - Yingfu Fund (02800) had a net outflow of -0.559 billion, with a -4.24% change in its closing price to 26.060 [2] - China Life (02628) experienced a net outflow of -0.427 billion, with a -23.81% change in its closing price to 26.140 [2] - China National Offshore Oil Corporation (00883) had a net outflow of -0.368 billion, with a -14.88% change in its closing price to 21.800 [2]

Core Points - The Huaxia CSI Hong Kong Stock Connect Central State-Owned Enterprises Dividend ETF (513910) closed down 0.24% on November 20, with a trading volume of 306 million yuan [1] - The fund was established on February 7, 2024, with an annual management fee of 0.50% and a custody fee of 0.10% [1] - As of November 19, 2024, the fund's latest share count was 2.775 billion shares, with a total size of 4.617 billion yuan, reflecting a 109.73% increase in shares and a 163.55% increase in size year-to-date [1] Fund Performance - The current fund manager, Lu Yayun, has managed the fund since its inception, achieving a return of 69.32% during the management period [2] - The fund's top holdings include COSCO Shipping Holdings, China Nonferrous Mining, China Ocean Shipping, Orient Overseas International, CITIC Bank, China Petroleum, China Shenhua Energy, People's Insurance Company of China, CNOOC, and Agricultural Bank of China, with respective holding percentages [2]

Core Insights - The Hong Kong Dividend Low Volatility ETF (520890) has seen a significant decrease in both share count and total assets in 2024, with shares down 41.46% and assets down 26.98% year-to-date [1][2] Fund Overview - The fund was established on September 4, 2024, with an annual management fee of 0.50% and a custody fee of 0.10% [1] - As of November 19, 2024, the fund's total shares stood at 72.08 million, with a total size of 107 million yuan [1] Performance Metrics - The fund manager, Li Qian, has achieved a return of 50.85% since taking over management on September 4, 2024 [2] - The fund's performance benchmark is the Hang Seng Stock Connect High Dividend Low Volatility Index [1] Liquidity Analysis - Over the last 20 trading days, the ETF has accumulated a trading volume of 843 million yuan, averaging 42.17 million yuan per day [1] - Year-to-date, the ETF has recorded a total trading volume of 4.22 billion yuan, with an average daily trading volume of 19.73 million yuan [1] Top Holdings - The ETF's top holdings include Shougang Resources (3.76%), Yanzhou Coal Mining (2.94%), and VTECH Holdings (2.76%), among others [2] - The total market value of the top holdings reflects a diversified investment strategy within the fund [2]

Group 1: Coal Price Trends - Coal prices have continued to rise, exceeding 830 CNY/ton, but a short-term peak may be reached [1] - The core reason for the recent coal price increase is a fundamental shift in the supply-demand dynamics since May [1] - The coal production for October was 410 million tons, a year-on-year decrease of 2.3%, but month-on-month stable [1] Group 2: Supply and Demand Analysis - The coal supply has contracted significantly due to government intervention against "involution," with production from July to October showing a continuous decline [1] - The total electricity consumption in August and September increased by 4.6%, a significant recovery from the 2.5% growth in Q1, indicating strong demand [1] - Despite entering the typical demand off-season, demand has remained unexpectedly high, particularly in East China [1] Group 3: Market Insights - As of November 14, 2025, the price of Q5500 coal at Huanghua Port was 837 CNY/ton, reflecting a 2.3% increase from the previous week [2] - The focus on domestic supply stability and reduced imports is expected to maintain a steady decline in total supply for the year [2] - The operating rate of major coking enterprises was reported at 79.18%, indicating a slight increase [2] Group 4: Recommended Stocks - The report recommends stocks in the coal sector, including China Shenhua Energy, Shaanxi Coal and Chemical Industry, and China Coal Energy [3] - Other recommended companies include Yanzhou Coal Mining and Jincheng Anthracite Mining [3]

Core Viewpoint - Coal stocks continue to decline, with notable drops in major companies such as China Coal Energy, Yanzhou Coal Mining, and China Shenhua Energy, indicating a bearish trend in the coal sector [1] Group 1: Market Performance - As of the latest report, China Coal Energy (01898) fell by 4.48% to HKD 10.87, Yanzhou Coal Mining (01171) decreased by 3.71% to HKD 10.63, China Shenhua Energy (01088) dropped by 1.56% to HKD 40.36, and Yancoal Australia (03668) declined by 0.87% to HKD 27.22 [1] Group 2: Coal Price Trends - Coal prices have risen above RMB 830 per ton, but a short-term peak in coal prices may have been reached. In October, the output of industrial raw coal was 410 million tons, a year-on-year decrease of 2.3%, but month-on-month stable [1] - The fundamental shift in the supply-demand dynamics of the coal industry since May is identified as the core reason for the recent price increases, suggesting a long-term upward trend in coal prices remains intact [1] Group 3: Future Outlook - According to Dongwu Securities, coal companies are expected to see their earnings bottom out starting from the third quarter, with coal prices projected to stabilize as they are anticipated to reach a low point in Q2 2025. This stability is expected to benefit leading companies, ensuring consistent profitability [1] - The expected decline in insurance capital costs may lead to a decrease in dividend yields for major players like China Shenhua and Shaanxi Coal from approximately 4.5% in 2025 to around 3.5% by mid-2026 [1]

Group 1 - Coal stocks continue to decline, with China Coal Energy (601898) down 4.48% to HKD 10.87, Yanzhou Coal Mining (600188) down 3.71% to HKD 10.63, China Shenhua Energy (601088) down 1.56% to HKD 40.36, and Yancoal Australia (03668) down 0.87% to HKD 27.22 [1] - According to Guotai Junan Securities, coal prices have risen above CNY 830 per ton, but the short-term surge may be coming to an end. In October, the output of industrial raw coal was 410 million tons, a year-on-year decrease of 2.3%, but month-on-month stable [1] - The fundamental shift in the supply-demand dynamics of the coal industry since May is identified as the core reason for the current price increase, indicating that the medium-term upward trend in coal prices will remain unchanged [1] Group 2 - Dongwu Securities suggests that high dividend logic indicates coal prices are expected to bottom out in Q2 2025, with coal companies' performance starting to recover from Q3. Future stability in coal prices is anticipated to support sustained profitability for leading companies [1] - It is projected that as insurance capital costs continue to decline, high dividend stocks like China Shenhua and Shaanxi Coal and Chemical Industry (601225) may see their dividend yield decrease from approximately 4.5% in 2025 to around 3.5% by mid-2026 [1]

Investment Rating - The report maintains an investment rating of "Leading the Market - A" for the coal industry [1][13]. Core Viewpoints - The 2026 medium- and long-term coal supply contract plan aligns with expectations, with a slight relaxation in performance requirements. The plan continues the mechanism established in the 2022 contracts, which was a significant adjustment from the previous five-year mechanism [1][2]. - The pricing mechanism for coal contracts has been adjusted to include a monthly price adjustment mechanism for production area contracts, while the port benchmark price remains unchanged at 675 RMB/ton [3][10]. - The report suggests that with the implementation of "anti-involution" policies, the expected increase in domestic coal supply is limited, leading to a recovery in coal prices and improved performance in long-term contracts [3][6]. Summary by Sections Contract Signing Requirements - For power companies, the signing demand should not be less than 80% of the required amount, with 80% of these contracts under key regulatory oversight. For coal companies, the task volume should not be less than 75% of their own resource volume [2][10]. Pricing Mechanism - The production area contracts will now have a monthly price adjustment mechanism, with the benchmark price set based on the reasonable price range for coal production in Shanxi, Shaanxi, and Inner Mongolia. The floating price will be determined by various indices [3][10]. Performance Supervision - The contract performance requirements have been relaxed, with monthly performance rates required to be no less than 80%, and quarterly and annual rates should generally not be less than 90%. There is an emphasis on increasing performance during peak seasons [3][10]. Investment Recommendations - The report highlights several companies with significant recovery potential, including Jin控煤业, 华阳股份, 山煤国际, 兖矿能源, 陕西煤业, 中煤能源, and 中国神华 [6].

Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (72.30%), Power Assets Holdings (69.38%), and GCL-Poly Energy Holdings (69.31%) [1] - Alibaba, Xiaomi, and Tencent saw the largest increases in holdings over the last five trading days, with increases of HKD 56.17 billion, HKD 15.10 billion, and HKD 13.17 billion respectively [1] - The largest decreases in holdings were observed in the Tracker Fund of Hong Kong (-HKD 20.12 billion), Hang Seng China Enterprises Index ETF (-HKD 15.76 billion), and China Shenhua Energy (-HKD 6.46 billion) [2] Hong Kong Stock Connect Holding Ratios - China Telecom (00728): 100.34 million shares, 72.30% holding ratio [1] - Power Assets Holdings (01635): 37 million shares, 69.38% holding ratio [1] - GCL-Poly Energy Holdings (01330): 28 million shares, 69.31% holding ratio [1] - Other notable companies include: - Hengtong International Investment (01341): 74.62 million shares, 68.79% [1] - COSCO Shipping Energy Transportation (01138): 88.9 million shares, 68.62% [1] Recent Increases in Holdings (Last 5 Trading Days) - Alibaba (09988): +HKD 56.17 billion, +35.92 million shares [1] - Xiaomi (01810): +HKD 15.10 billion, +38.91 million shares [1] - Tencent (00700): +HKD 13.17 billion, +2.12 million shares [1] - Other companies with significant increases include: - China Construction Bank (00939): +HKD 9.83 billion, +120.94 million shares [1] - Industrial and Commercial Bank of China (01398): +HKD 8.70 billion, +134.90 million shares [1] Recent Decreases in Holdings (Last 5 Trading Days) - Tracker Fund of Hong Kong (02800): -HKD 20.12 billion, -77.44 million shares [2] - Hang Seng China Enterprises Index ETF (02828): -HKD 15.76 billion, -16.85 million shares [2] - China Shenhua Energy (01088): -HKD 6.46 billion, -15.76 million shares [2] - Other companies with notable decreases include: - Agricultural Bank of China (01288): -HKD 5.89 billion, -99.68 million shares [2] - China Hongqiao Group (01378): -HKD 3.47 billion, -11.31 million shares [2]