Report Industry Investment Rating - The report does not explicitly state the industry investment rating. Report's Core View - In the low - interest and high - volatility market environment, dividend investment is popular. The China Securities Chengtong Central Enterprise Dividend Index has significant advantages, and the Rongtong China Securities Chengtong Central Enterprise Dividend ETF provides an efficient tool for investors to invest in high - quality central enterprise dividend assets [2][4]. Summary According to Relevant Catalogs 1. Dividend Investment - A Long - Term Winning Strategy across A - Share Style Rotations 1.1 Long - term Allocation Value of Dividend Assets - Dividend investment focuses on stable cash - flow and profit growth of companies. In the context of China's low - interest environment and style rotations, dividend assets have more prominent allocation advantages compared to bonds. As of 2025, the dividend yield of the CSI Dividend Index is over 4.3%, higher than the 10 - year Treasury bond yield [7]. 1.2 "Offensive and Defensive" Attributes of Dividend Investment - Dividend investment offers both long - term allocation value from dividends and relatively stable capital gains. It shows strong anti - decline and defensive capabilities in bear markets and can also benefit from economic upswings. From 2005 - 2024, high - dividend indices led the market in 9 years, and from 2015 to the present, the CSI Dividend Index has outperformed the Shanghai Composite Index [9]. 1.3 Allocation Value of the "Dividend + Fixed - Income" Portfolio - The "dividend + fixed - income" portfolio is a cost - effective strategy in a low - interest environment. It can enhance the overall return and reduce volatility. The correlation between the CSI Dividend Index and the 10 - year Treasury bond rate from 2015 to now is - 0.5 [13]. 2. How to Choose a Dividend Index 2.1 Comparison of Dividend Index Compilation Methods - Dividend index compilation mainly involves sample selection and index calculation. Traditional dividend indices use historical dividend yields, which have limitations. The China Securities Chengtong Central Enterprise Dividend Index is the first in the A - share market to use the expected dividend yield for stock selection and weighting, considering both dividend willingness and ability [16]. 2.2 Analysis of the Return Characteristics of Different Dividend Indices - Different dividend indices have different risk - return characteristics. From 2017 - 2025, the China Securities Chengtong Central Enterprise Dividend Index has high returns, a high Sharpe ratio, and low drawdowns. It has outperformed indices like the CSI 300, CSI Dividend Index, and CSI Central Enterprise Dividend Index by about 20 percentage points in cumulative returns and nearly 2 percentage points in annualized returns [19][28]. 3. Rongtong China Securities Chengtong Central Enterprise Dividend ETF: A New Choice for Dividend Investment 3.1 Policy - Driven Valuation Repair of Central Enterprise Dividends - Central enterprises are important pillars of the national economy with high stability. Their valuations are currently low but have great potential for repair. Policies such as the improvement of the central enterprise assessment system and market - value management policies are driving the valuation increase [31][33][35]. 3.2 Advantages of the China Securities Chengtong Central Enterprise Dividend Index - The index has four features: it uses the expected dividend yield, focuses on mid - large - cap high - dividend cyclical stocks, does not include bank stocks, and has high dividends and low valuations. As of August 2025, its dividend yield is 4.38%, higher than the central enterprise and A - share averages [36][38][40]. 3.3 High Returns, High Sharpe Ratio, and Low Drawdowns of the Chengtong Central Enterprise Dividend Index - Since 2017, the index has achieved a cumulative return of 56.02% and an annualized return of 5.41%. Considering dividends, the cumulative return is 113.16%. It has better risk - return characteristics compared to other indices [43]. 3.4 Investment Strategy and Applicable Scenarios of the Rongtong China Securities Chengtong Central Enterprise Dividend ETF - The fund is a fully passive index fund using the full - replication method. It is suitable for long - term allocation by pension funds, insurance funds, and conservative investors. It also offers tactical allocation opportunities and can be used as a defensive asset in a volatile market. As of August 2025, its management and custody fees are lower than most similar products [45][46][47].

Group 1 - The core viewpoint of the article indicates that the Hong Kong stock market, particularly the dividend sector, experienced a decline last week, with the Hang Seng China Central State-Owned Enterprises Dividend Total Return Index falling by 1.72% and the Hang Seng Index down by 1.00% [1] - The materials sector led the performance among Hang Seng's primary industries, while the healthcare sector lagged behind [1] - Foreign capital continued to flow into the Hong Kong stock market, with a net inflow of 22.2 billion HKD from southbound funds last week, despite a slight outflow of 0.03 million USD from active foreign investments [1][2] Group 2 - The outlook for the Hong Kong stock market suggests a potential easing of liquidity, as the Hong Kong Monetary Authority may not need to continue withdrawing funds due to the appreciation of the HKD against the USD [2] - The anticipated interest rate cuts by the Federal Reserve in September could lead to a flow of US funds into emerging markets, benefiting the Hong Kong stock market [2] - The dividend yield of the Hang Seng China Central State-Owned Enterprises Dividend Index stands at 5.98%, significantly higher than the 4.46% yield of the CSI Dividend Index, with a price-to-book ratio of 0.60 and a price-to-earnings ratio of 6.79 [2] Group 3 - The overall performance of the Hong Kong stock market last week showed a mixed trend, with the broad-based indices reflecting varied sector performances [4] - The recent adjustments in liquidity are viewed as short-term impacts, with the Hong Kong Interbank Offered Rate (Hibor) rising sharply from 0.9% to 3.3% [1][2] - The strong dividend strategy of central state-owned enterprises is expected to continue, supported by a low interest rate environment and a weak economic recovery [2]

Core Viewpoint - The article discusses the strong performance of the dividend index in recent years, its driving factors, and the potential for continued growth in the future [1][5][47]. Performance Overview - The dividend index has shown strong performance in recent years, with some dividend funds increasing in value by 50%-80% [8][47]. - From 2018 to 2021, the growth style bull market saw the growth style index rise over 150%, while the dividend index lagged behind [6]. - However, from 2022 to 2024, the dividend index has performed well, showing overall growth [7]. Sources of Returns - The four main sources of returns for dividend index funds are: 1. **Undervalued Buy-in and Valuation Improvement**: The dividend index has seen a significant increase in price-to-earnings (P/E) ratio from around 7-8 times in 2018 to approximately 9-10 times by May 2025 [18][19][22]. 2. **Profit Growth**: The underlying companies of the dividend index have shown stable profit growth, particularly from 2022 to 2024, which supports the index's performance [27]. 3. **Dividend Yield**: The current dividend yield has increased significantly compared to 5-10 years ago, with many stocks now yielding 5%-6% [30][34]. 4. **Rule Optimization**: The optimization of index rules has improved returns, with newer indices incorporating additional criteria for stock selection [39][44]. Historical Performance Metrics - The annualized return of the dividend index since the end of 2004 is 8.73%, which increases to 12.52% when accounting for dividends [13][14]. - The long-term growth rate of the dividend index is estimated at 8%-9%, with an additional annual dividend yield of 3%-4% [14]. Policy Impact - Recent policies have encouraged companies to increase dividend payouts, resulting in a rise in the number and amount of cash dividends distributed by A-share companies, reaching approximately 2.4 trillion in 2024 [33]. - The proportion of profits distributed as dividends has increased from 30%-40% to 40%-50% for some companies [34]. Conclusion - The combination of undervalued buy-in, profit growth, increased dividend yields, and optimized rules are expected to continue driving the long-term growth of the dividend index [47].

Group 1 - The Hong Kong stock market opened high and maintained volatility, with significant gains in Chinese brokerage, airline, home appliance, and insurance stocks [1] - The China Southern ETF (520660) tracking the State-owned Enterprises Dividend Index rose by 1.22%, marking three consecutive days of gains [1] - The index's total dividend for 2024 is projected to exceed 567.5 billion, with 49 companies participating and a current dividend yield of 6.26%, outperforming mainstream indices [1] Group 2 - Everbright Securities suggests that the Hong Kong stock market offers high investment value due to supportive domestic policies and reduced overseas disturbances, indicating a potential for continued recovery [2] - Investors without stock accounts can access investment opportunities through the China Southern ETF (520660) by initiating linked funds [2]