Mei Ri Jing Ji Xin Wen·2025-08-05 07:21Core Viewpoint - The performance of the high dividend sector in the Hong Kong stock market is significantly influenced by cross-border liquidity, with expectations of a mid-term downward trend for the US dollar index despite recent fluctuations [1] Group 1: Market Conditions - The recent rise in the US dollar index was driven by high inflation, but employment data indicates signs of recession, leading to increased volatility in the dollar index [1] - The cross-border liquidity support for the Hong Kong stock market and equity assets is expected to continue [1] Group 2: Sector Performance - The banking sector's H-shares have underperformed compared to the Hang Seng Composite Index, although state-owned banks remain relatively stable with valuations at historical average levels and attractive dividend yields [1] Group 3: Policy Implications - The restoration of value-added tax on government bonds may reflect the management's intention to encourage capital flow towards equity assets [1] - There is a trend of clients shifting from fixed-income products to equities, which may provide support for the high dividend sector in the Hong Kong stock market [1]