Core Viewpoint - The Hong Kong stock market is experiencing a surge in popularity for dividend-themed ETFs, driven by attractive dividend yields and a strong performance of dividend-paying stocks [1][2][3] Group 1: Market Performance - As of November 7, the total scale of Hong Kong dividend-themed ETFs has exceeded 67.812 billion, with an increase of 11.738 billion since October [1] - The Hong Kong stock market has seen a comprehensive increase in dividend levels, with 713 companies declaring dividends totaling 812.7 billion HKD, a year-on-year growth of 31.35% [2] - The Hong Kong dividend indices, such as the Hong Kong Stock Connect High Dividend (CNY) Index and the Hang Seng High Dividend Low Volatility Index, have shown significant long-term performance, with five-year cumulative gains of 42.64% and 43.17%, respectively, outperforming the Hang Seng Index's decline of 28.40% [3] Group 2: Investment Opportunities - Investors can utilize Hong Kong dividend ETFs (513530) and low volatility dividend ETFs (520890) for index-based investment, focusing on high liquidity and continuous dividend payments [3] - The Hong Kong Stock Connect Low Volatility Dividend ETF has achieved a return of 14.10% in the first half of 2025, compared to its benchmark's return of 11.88% [3] - The Hong Kong Stock Connect Dividend ETF has shown returns of 3.59%, 7.14%, 30.16%, and 15.91% from its inception in 2022 to the first half of 2025, outperforming its benchmark in the same periods [4]

Core Viewpoint - The recent trend of southbound capital indicates a strong preference for high-dividend stocks in the Hong Kong market, with significant net inflows into the financial sector and other traditional high-dividend sectors [1][2]. Dividend Characteristics - The Hong Kong high-dividend index has a dividend yield exceeding 6%, which is notably higher than the yields of A-share dividend indices, such as the CSI Dividend Index (4.58%) and the Shenzhen Dividend Index (3.95%) [3][5]. Market Conditions - Following the recent monetary policy easing, the yield on 10-year government bonds remains low, while the one-year fixed deposit rates of major state-owned banks have fallen below 1%. This environment enhances the attractiveness of the Hong Kong high-dividend index, which currently stands at a dividend yield of 6.15% [5][9]. Performance Comparison - Since July 2025, the Hong Kong high-dividend low-volatility index has shown resilience, achieving a cumulative return of 42.93% since the "924" market rally, outperforming major A-share dividend indices and other Hong Kong dividend indices [9][11]. Index Composition - The index is heavily weighted towards the banking sector (18.9%) and state-owned enterprises (68%), which are characterized by stable operations and consistent dividend payouts. This stability contributes to the index's strong performance and defensive capabilities in volatile markets [11][12]. Investment Opportunities - The Hong Kong Dividend Low-Volatility ETF (520890) has delivered a return of 40.19% since its inception, outperforming its benchmark. This ETF allows investors to access high-dividend assets without the restrictions of QDII quotas and supports T+0 trading [12][13]. Long-term Trends - The ongoing global economic slowdown and increased market volatility are driving investors towards high-dividend assets with solid fundamentals. Regulatory efforts to improve dividend mechanisms may further enhance the appeal of dividend stocks in the long term [12].

Group 1 - The Hong Kong Dividend ETF (513530) has seen continuous net inflows for 22 trading days since April 24, 2025, reaching new highs in both scale and shares, with a year-to-date increase of over 50% [1] - As of May 28, 2025, the ETF's latest dividend yield is 7.88%, surpassing major A-share dividend indices such as CSI Dividend (6.35%) and Shenzhen Dividend (3.89%), highlighting its investment value [1] - The ETF's latest price-to-book ratio is only 0.63, indicating a combination of high dividends and low valuations, which may provide sustained long-term value for the Hong Kong dividend strategy [1] Group 2 - The Hong Kong Dividend ETF (513530) is the first ETF to invest in Hong Kong stocks through the QDII model, offering a more favorable tax structure compared to traditional channels, potentially reducing dividend tax costs for long-term holders [2] - The fund management company, Huatai-PineBridge Fund, has over 18 years of experience in index investment and has been proactive in the dividend-themed ETF sector since 2006, creating a diverse range of strategies [2] - The two largest dividend-themed ETFs in the A-share market, with scales exceeding 15 billion, are the Dividend ETF (510880) and the Low Volatility Dividend ETF (512890), with respective scales of 20.073 billion and 16.705 billion [2]

Group 1 - The core viewpoint highlights the increasing preference for defensive assets, particularly the Hong Kong dividend low volatility ETF (520550), which has seen continuous net inflows for nine weeks and a nearly 6% increase in fund size year-to-date, reaching a historical peak [3] - The structural differences in high dividend assets between A-shares and Hong Kong stocks are noted, with A-shares concentrated in traditional industries like coal, banking, and textiles, while Hong Kong's high dividend sectors are more diversified, including real estate, public transport, and construction [3] - The defensive nature of dividend assets is emphasized, showing significant excess returns during market downturns, although absolute returns remain positively correlated with overall market trends [3] Group 2 - The Hong Kong dividend low volatility ETF (520550) is designed to optimize investment experience through a low management fee of 0.2%, monthly dividend distribution, and T+0 trading to enhance liquidity [4] - The ETF focuses on mature industry leaders in finance and energy, with strict weight limits on individual stocks to avoid "dividend traps," creating a balanced investment portfolio [4] - Analysts suggest that in the current complex market environment, Hong Kong dividend assets with valuation advantages and dividend certainty may become a key strategic allocation choice, especially as the interconnectivity between mainland and Hong Kong markets deepens [4]