Core Viewpoint - The article highlights the increasing capital flow into high dividend sectors, particularly banks, amidst a backdrop of technology stock buybacks and sustained policy benefits, suggesting a continued preference for a "dumbbell" investment style [3][4]. Group 1: Market Performance - As of July 10, 2025, the Hang Seng High Dividend Yield Index (HSSCHKY) rose by 0.85%, with notable increases in stocks such as CITIC Bank (up 4.27%) and China Ping An (up 3.64%) [3]. - The Bosera Hang Seng High Dividend ETF (513690) increased by 0.87%, reaching a latest price of 1.04 yuan, and has seen a cumulative rise of 4.35% over the past month [3]. - The ETF recorded a turnover rate of 1.32% with a transaction volume of 61.75 million yuan, averaging a daily transaction of 315 million yuan over the past week [3]. Group 2: Fund Flows and Performance - The Bosera Hang Seng High Dividend ETF has achieved a latest scale of 4.638 billion yuan and a share count of 4.518 billion, marking a one-year high [4]. - Over the past five days, the ETF has experienced continuous net inflows, totaling 510 million yuan, with a peak single-day inflow of 429 million yuan [4]. - The ETF's financing buy-in amount reached 5.009 million yuan, with a financing balance of 6.4729 million yuan [4]. Group 3: Historical Returns and Risk Metrics - The Bosera Hang Seng High Dividend ETF has seen a net value increase of 39.38% over the past two years, ranking 103 out of 2224 in the index stock fund category [4]. - The ETF's highest monthly return since inception was 24.18%, with an average monthly return of 4.96% [4]. - As of July 4, 2025, the ETF's Sharpe ratio over the past year was 1.60, indicating strong risk-adjusted returns [4]. Group 4: Fee Structure and Tracking Accuracy - The management fee for the Bosera Hang Seng High Dividend ETF is 0.50%, while the custody fee is 0.10% [5]. - The ETF closely tracks the Hang Seng High Dividend Yield Index, with a tracking error of 0.051% over the past month [5]. - The top ten weighted stocks in the index account for 28.61% of the total index, including companies like Yanzhou Coal and China Petroleum [5].

Market Overview - The Hong Kong stock market opened slightly lower on July 10, with the Hang Seng Index down by 0.11%, the Hang Seng Tech Index down by 0.26%, and the State-Owned Enterprises Index down by 0.1% [1] Future Market Outlook - CICC indicates that the "A+H" listings and potential return of Chinese concept assets are expected to increase the supply of quality assets, with the weight of the "new economy" sector likely to rise, driving up valuations and trading turnover [2] - China Galaxy Securities notes that despite rising global macro risks, Hong Kong stocks are at relatively low absolute valuations, suggesting high medium to long-term allocation value. The technology sector is expected to present significant investment opportunities due to strong policy support and improving earnings growth [2] - Guoyuan Hong Kong anticipates that policy expectations will support Hong Kong stock valuations, maintaining resilience in the medium to long term [3] - CITIC Securities expects that the ongoing reform of the Hong Kong listing system will enhance asset quality and liquidity, with continued inflow of southbound funds [3] Sector Focus - Recent data shows that southbound funds have increased their holdings across various sectors, particularly in healthcare and financial sectors, reflecting a strategic allocation towards high-growth sectors [3] - The technology sector is experiencing a repurchase trend, indicating companies' self-affirmation of undervaluation, while high-dividend sectors are gaining momentum due to ongoing policy benefits [5] Company News - Alibaba has completed a private placement of zero-coupon exchangeable bonds amounting to HKD 12.023 billion [7] - Shanghai Pharmaceuticals expects a net profit attributable to shareholders of approximately RMB 4.45 billion for the first half of the year, representing a year-on-year increase of about 52% [8] - Country Garden reported a cumulative contract sales amount of approximately RMB 13.37 billion for the first six months, a year-on-year decrease of 27.06% [9] - New Town Development's cumulative contract sales for the first half of the year amounted to approximately RMB 10.33 billion, down 56.14% year-on-year [9]

Core Viewpoint - The Hong Kong stock market is experiencing a significant shift in capital flow, with funds moving away from major tech companies like Tencent, Xiaomi, and Alibaba towards high-dividend sectors such as banks, indicating a potential continuation of a "barbell" investment strategy [1][2][4] Group 1: Capital Flow Trends - From June 1 to June 30, the market value of Tencent held through the Hong Kong Stock Connect decreased by 21.50 billion HKD, with a reduction of 41.91 million shares [1] - Xiaomi and Alibaba also saw declines in market value held through the Hong Kong Stock Connect, with decreases of 12.90 billion HKD and 7.73 billion HKD respectively, totaling over 40 billion HKD in losses for these three companies [1] - In May, similar trends were observed, with Tencent, Xiaomi, and Alibaba again leading in market value declines [1] Group 2: Shift to High-Dividend Sectors - During the same period, the market value of shares held in China Construction Bank increased by 14.92 billion HKD, with an addition of 1.838 billion shares [2] - Meituan also experienced a rise in market value of 14.48 billion HKD, alongside other banks and insurance companies like China Life and Agricultural Bank [2] - The banking sector has shown strong performance, while internet giants have been consolidating after a strong rebound in Q1 [2] Group 3: Investment Strategies - The "barbell" investment strategy is expected to persist, with a focus on defensive dividend sectors and stable assets like financials, utilities, and precious metals [2] - Companies are engaging in stock buybacks to support share prices and improve financial conditions, indicating a belief in undervaluation [3] - The market's perception of state-owned banks as lacking growth potential is being challenged, with recognition of their strategic value and support from policy measures [4]