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]