Core Viewpoint - The article discusses the performance and valuation of dividend and value style indices, highlighting their resilience and potential for returns even without reaching overvaluation levels [3][4][6]. Group 1: Valuation and Performance - The dividend index has not reached overvaluation during the period from 2018 to August 2025, with the China Securities Dividend Index increasing from around 8 times to approximately 10 times in price-to-earnings ratio [6]. - The contribution of "valuation improvement" accounts for approximately 25% of the returns during this period [7]. - The dividend index offers an annual dividend yield of 4%-5%, with the remaining returns coming from the growth in earnings of the companies behind the index [8]. Group 2: Investment Strategy - The strategy of "buy low and sell high" is inherent in value style investing, which tends to maintain lower valuations over time [3][9]. - Even in years when the value style indices do not reach overvaluation, they can still experience significant price appreciation, as evidenced by a 60%-70% return from certain dividend and low-volatility funds held since 2018 [4].

Core Viewpoint - The market is experiencing fluctuations, with the A-share and Hong Kong stock markets showing signs of volatility, but the overall trend remains upward due to valuation improvements and profit recovery [10][21]. Market Performance - The overall market index, represented by the CSI All Share Index, fell by 1.38%, closing at 4.7 stars [1]. - Large-cap stocks, as indicated by the CSI 300, decreased by 1.82% [2]. - Small-cap stocks showed minor declines with limited volatility [3]. - Value style stocks performed relatively better, experiencing smaller declines compared to growth style stocks, which saw more significant drops [4][5]. Market Trends - The recent year has seen a dual boost in the A-share and Hong Kong markets driven by "valuation enhancement + profit growth recovery," similar to the period from 2013 to 2017 [10]. - The market is characterized by a pattern of "advancing three months, retreating one month," with each cycle lasting approximately 3-5 months, closely tied to earnings growth reports [11][12]. - A-share markets have rebounded from 5.9 stars to around 4.7 stars, while Hong Kong stocks have seen a more substantial increase of 20-30%, moving from around 5 stars to approximately 3.9 stars before recent declines [13]. Sector Performance - Different sectors are recovering at different paces, with Hong Kong technology stocks showing over 100% year-on-year profit growth last year [16]. - In the first two quarters of this year, both Hong Kong and A-share pharmaceutical sectors have also reported significant profit growth, contributing to the rise of related indices [17]. - Small-cap stocks are beginning to show signs of recovery, while the consumer sector remains relatively weak [18]. Investment Strategies - Value style indices, including dividend and low-volatility strategies, are less likely to reach overvaluation compared to growth style indices [23][25]. - The value investment approach, rooted in principles from Graham and Buffett, focuses on selecting stocks with low price-to-earnings and price-to-book ratios [26]. - Various types of value indices include those focusing on low P/E ratios, high dividend yields, low volatility, and high free cash flow [27][28][30]. Index Valuation - The current market valuation is not excessively high (4.7 stars), and combined with corporate profit growth, this is expected to drive further market index increases [21]. - The dividend index has not reached high valuation levels, with the P/E ratio increasing from around 8 times to approximately 10 times since 2018, contributing to about 25% of returns [51]. Conclusion - The market is expected to continue its upward trajectory despite short-term fluctuations, with value style indices providing a more stable investment option compared to growth style indices, which are more prone to volatility and overvaluation [59][60].

Core Viewpoint - The article discusses the valuation of global stock indices, U.S. Treasury indices, and the performance of various dividend indices, highlighting investment opportunities in overseas markets and the recent trends in Hong Kong dividend indices. Group 1: Market Overview - The global stock market experienced minor fluctuations this week, returning to a rating of 3.2 stars [8] - The European market saw a slight decline, while the Asia-Pacific market remained stable [9][10] - Recent regional conflicts caused some volatility in global markets, but the impact on corporate operations is expected to be minimal and short-lived [11][12][13] Group 2: Hong Kong and A-shares Performance - The Hong Kong stock market experienced a pullback on Thursday and Friday, but overall, it showed a slight increase for the week [14] - A-shares remained stable with little fluctuation [15] - Notably, Hong Kong dividend indices have recently reached historical highs, including the Hong Kong Dividend Index, Hang Seng Dividend Low Volatility, and Shanghai-Hong Kong-Shenzhen Dividend Low Volatility [16][17] Group 3: Dividend Indices Valuation - The article provides a valuation table for various dividend indices, including earnings yield, price-to-earnings ratio, and dividend yield [20][21][22] - The recent rise in dividend indices is attributed to a decrease in deposit rates, leading to a shift of funds from deposits and bonds into dividend and REIT assets [27] - The valuation of dividend indices remains relatively low, with adjustments made during index rebalancing that typically lower the average price-to-earnings ratio of included stocks [28] Group 4: Global Investment Opportunities - The article mentions the availability of global stock index funds in overseas markets, which have substantial assets under management, but such options are limited in mainland China [32] - The company has introduced a "Global Index Advisory Portfolio" that diversifies investments across U.S., UK, Hong Kong, and A-shares to track global stock market performance [33] - There are current restrictions on the purchase amounts for overseas market investment funds, with a maximum daily purchase limit of 350 yuan [34] Group 5: New Book Release - The article announces the release of the new edition of "The Long-Term Investment Guide," which includes updated data and new chapters, emphasizing the importance of stock assets for long-term wealth accumulation [37][40] - The book has achieved significant sales rankings upon release, indicating strong interest in investment literature [38]