Jin Rong Jie·2025-07-30 04:24Core Viewpoint - The A-share market experienced a slight rise, while the Hong Kong stock market opened higher, with the steel and oil sectors leading the gains. The Pacific Securities highlighted the increasing value of the Hong Kong Central State-Owned Enterprises (SOE) Dividend ETF, indicating a growing preference for high-dividend stocks in the Hong Kong market [1]. Group 1: Market Performance - As of 11:30 AM, the Hong Kong Central State-Owned Enterprises Dividend ETF (520660.SH) rose by 1.75%, and China Petroleum & Chemical Corporation increased by 2.39% [1]. - The overall performance of the Hong Kong stock market showed a positive trend, particularly in sectors such as steel and oil [1]. Group 2: Investment Insights - The cross-border ETF capital flow indicates that Hong Kong dividend ETFs are receiving significant attention, with net inflows ranking high, reflecting a market preference for high-dividend sectors [1]. - Current Hong Kong SOEs exhibit high dividend advantages and significant undervaluation, coupled with deepening SOE reforms and improved profit stability, suggesting that dividend rates are likely to remain high [1]. - The low-interest-rate environment enhances the attractiveness of dividend assets, further supported by the convenience of the Hong Kong Stock Connect mechanism and the ongoing trend of southbound capital inflows [1]. Group 3: Sector Analysis - Hong Kong SOEs are primarily concentrated in the financial, energy, and public utility sectors, benefiting from policy expectations and a declining interest rate environment, which provides high certainty in profits and dividends [1]. - The cost-effectiveness of sector allocation in Hong Kong SOEs is highlighted, making them an appealing investment choice [1].