Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core View - Near the holiday, there are signs of capital withdrawal, with a significant contraction in the trading volume of the two markets today. Technology concepts led the decline, while the dividend index rose. To cope with holiday uncertainties in the short term, risk aversion has increased. Although the stock market fluctuated frequently this week, as previously mentioned, the central point did not change much, showing a pre - holiday stable transition and wide - range shock market. There are only two trading days next week. If there are no unexpected factors, the stock market is expected to continue to fluctuate. Domestic PMI data will be released, and attention should be paid to its changes. If capital flow intensifies before the holiday, it may increase the stock market's amplitude. It is recommended to gradually lighten the position and buy the straddle option strategy next week [4]. 3. Summary by Directory Market Review - The stock index declined overall today. Taking the CSI 300 Index as an example, it closed down 0.95%. In terms of capital, the trading volume of the two markets decreased by 224.05 billion yuan. In the futures index market, IF declined with shrinking volume, while other varieties declined with increasing volume [2]. Important Information - The Hong Kong Monetary Authority will launch a RMB business capital arrangement from October 9 this year, replacing the existing RMB trade financing liquidity arrangement, and implementing multiple optimization measures and expanding eligible capital uses. - Seven departments including the Ministry of Industry and Information Technology issued the "Work Plan for Stabilizing Growth in the Petrochemical and Chemical Industry (2025 - 2026)". - Trump announced that starting from October 1, a 50% import tariff will be imposed on kitchen cabinets, bathroom sinks and related building materials, a 30% tariff on imported furniture, and a 100% tariff on patented and branded drugs [3]. Index Futures Market Observation | | IF | IH | IC | IM | | --- | --- | --- | --- | --- | | Main contract intraday change (%) | -1.04 | -0.47 | -1.47 | -1.39 | | Trading volume (10,000 lots) | 12.1085 | 4.8226 | 13.6035 | 24.299 | | Trading volume change compared with the previous period (10,000 lots) | -1.2397 | -0.3587 | 0.637 | 3.0154 | | Open interest (10,000 lots) | 25.9924 | 9.5988 | 25.2224 | 36.4864 | | Open interest change compared with the previous period (10,000 lots) | -0.6449 | 0.1041 | 0.3365 | 1.1537 | [4] Spot Market Observation | Name | Value | | --- | --- | | Shanghai Composite Index change (%) | -0.65 | | Shenzhen Component Index change (%) | -1.76 | | Ratio of rising to falling stocks | 0.53 | | Trading volume of the two markets (100 million yuan) | 21468.85 | | Trading volume change compared with the previous period (100 million yuan) | -2242.05 | [6]

Group 1 - The article highlights the top 20 performing stocks in the S&P China A-Share Dividend Opportunity Index (CSPSADRP) as of September 22, 2025, showcasing significant year-to-date gains and dividend yields [1][2] - The top performer is Youfa Group (601686.SH) with a year-to-date increase of 15.82% and a dividend yield of 4.85% [1] - Other notable performers include HERRIG (601598.SH) with a 36.27% increase and a 4.06% dividend yield, and Yutong Bus (600066.SH) with an 18.96% increase and a 6.74% dividend yield [1] Group 2 - The overall dividend yield for the index is reported at 5.12%, with a historical price-to-earnings ratio of 10.47 and an expected price-to-earnings ratio of 9.88 [2] - The index consists of 100 stocks, with individual stock weight capped at 3% and sector weight limited to 33% [2] - The data is sourced from the Shanghai Stock Exchange and Wind, reflecting the performance and characteristics of the index as of late August 2025 [2]

Core Viewpoint - The recent surge in Agricultural Bank and Postal Savings Bank stocks indicates a potential shift in market dynamics, with Agricultural Bank's market capitalization surpassing Industrial and Commercial Bank of China, marking it as the new "universe bank" [1][3]. Group 1: Bank Sector Performance - Agricultural Bank's A-shares rose over 5%, while Postal Savings Bank increased by over 3%, both reaching historical highs [1]. - Other major state-owned banks also experienced significant gains, contributing to a market stabilization after a previous decline [1]. - The overall liquidity in the market improved during this rally, suggesting a recovery in investor confidence [1]. Group 2: Market Trends and Investor Sentiment - The market has shown increased activity, with daily trading volumes exceeding 3 trillion yuan and margin financing balances surpassing 2.2 trillion yuan [5]. - Despite the active trading environment, there are concerns about market overheating, leading to potential technical adjustments in the indices [5][6]. - Analysts suggest that the current market decline is primarily due to a reduction in risk appetite rather than any substantial negative news, indicating a possible horizontal consolidation phase ahead [6]. Group 3: Sector Rotation and Investment Opportunities - There is a notable rotation among sectors, with consumer and new energy sectors showing excess returns, while AI computing remains a core theme despite recent adjustments [6]. - The banking sector's price-to-book (PB) ratio is at a low level of 0.71, suggesting potential value opportunities for investors [3]. - Future growth in bank revenues and profits is anticipated due to narrowing interest margin declines and reduced non-interest disruptions [3].

1. Report Industry Investment Rating - Not mentioned in the provided content 2. Core View of the Report - The trend of the dividend index reversed today, with the banking sector leading the rise and the dividend index rising 0.52%, performing best among domestic important stock index trends. Except for IH, other stock index futures showed volume - increasing declines, indicating mainly short - position additions. Market sentiment changed today. With a military parade tomorrow, there are large differences between bulls and bears in the market. To avoid the risk of market pull - back, short - position hedging increased in the futures market. Meanwhile, funds were more allocated to defensive high - dividend industries, and there were signs of profit - taking in the previously popular TMT industry, with the electronics, communication, and computer industries leading the decline. Although there were changes in market sentiment, trading volume remained high. Except for the basis of some IH contracts declining, the overall discount of other stock index futures narrowed. So, it's hard to say that the short - term outlook has turned optimistic and needs to be verified in the following trading days [6] 3. Summary According to Related Catalogs Market Review - The stock index showed a volume - increasing oscillation today, and large - scale indexes had different performances. For example, the CSI 300 index closed down 0.74%. The trading volume of the two markets increased by 1250.31 billion yuan. In the futures market, IH rose with increasing volume, while other stock index futures declined with increasing volume [4] Important Information - As of the morning of September 2nd, the FedWatch tool of the Chicago Mercantile Exchange showed that the probability of the Fed cutting interest rates by 25 basis points in September had risen to 89.6% [5] Strategy Recommendation - Hold positions and wait and see [7] Stock Index Futures Market Observation | | IF | IH | IC | IM | | --- | --- | --- | --- | --- | | Main contract intraday change (%) | - 0.72 | 0.35 | - 1.80 | - 1.85 | | Trading volume (10,000 lots) | 19.5366 | 8.0614 | 17.2836 | 33.7746 | | Trading volume change compared to the previous day (10,000 lots) | 5.1069 | 2.6017 | 4.6175 | 8.5941 | | Open interest (10,000 lots) | 29.8335 | 10.9749 | 25.4784 | 40.1271 | | Open interest change compared to the previous day (10,000 lots) | 2.1717 | 1.2783 | 1.8794 | 2.6043 | [8] Spot Market Observation | Name | Value | | --- | --- | | Shanghai Composite Index change (%) | - 0.45 | | Shenzhen Component Index change (%) | - 2.14 | | Ratio of rising stocks to falling stocks | 0.26 | | Trading volume of the two markets (billion yuan) | 28749.91 | | Trading volume change compared to the previous day (billion yuan) | 1250.31 | [9]

Core Viewpoint - The Zhongzheng Dividend Quality ETF (159209) has seen significant net inflows, exceeding 56 million CNY over the past 12 trading days, indicating strong investor interest and confidence in this fund [1]. Performance Summary - As of August 26, the Zhongzheng Dividend Quality Total Return Index has increased by over 11.29% year-to-date, outperforming the Zhongzheng Dividend Total Return Index and the Zhongzheng Low Volatility Dividend Total Return Index, which rose by 5.33% and 9.23% respectively [1][4]. Sector Contribution - The performance of the Zhongzheng Dividend Quality Index is driven by diverse sectors, with significant contributions from Media (20.4%), Pharmaceuticals (19.6%), and Machinery Equipment (15.5%) [4][5]. - In contrast, the banking sector has been a major contributor to the performance of other dividend indices, accounting for 73.8% of the gains in the Low Volatility Dividend Index and 50.3% in the Dividend Index [5]. Industry Weighting - The Zhongzheng Dividend Quality Index maintains a balanced sector weight, with no single industry exceeding 20%. The top three sectors are Food & Beverage, Non-ferrous Metals, and Automotive, which contrasts with the high concentration of banking stocks in other indices [5][7]. Financial Metrics - The average Return on Equity (ROE) for the Zhongzheng Dividend Quality Index was 4.13% at the end of Q1, significantly higher than the 2.36% and 2.40% ROE of the Zhongzheng Dividend Index and the Low Volatility Dividend Index respectively, indicating superior profitability among its constituent stocks [7]. Product Features - The management and custody fees for the Zhongzheng Dividend Quality ETF (159209) are only 0.20%, the lowest in the market. Additionally, the ETF employs a monthly dividend assessment mechanism, enhancing cash flow for investors and improving the overall holding experience [7].

Core Viewpoint - China Three Gorges Corporation plans to increase its stake in China Yangtze Power Co., Ltd. by up to 8 billion yuan between August 23, 2025, and August 21, 2026, reflecting confidence in the company's future development [1][2]. Group 1: Company Actions - China Yangtze Power announced a significant share buyback plan, with the controlling shareholder intending to purchase between 4 billion and 8 billion yuan worth of shares within the next 12 months [2][3]. - The company is set to release its mid-year report on August 30, with the first quarter showing a net profit growth exceeding 30% [3]. - A new shareholder return plan for 2026-2030 was announced, committing to cash dividends of no less than 70% of the annual net profit attributable to shareholders [3]. Group 2: Market Context - The electronic sector has surpassed the banking sector in A-share market capitalization, indicating a shift in market dynamics [1]. - Recent performance of China Yangtze Power has been weak, with its stock price down nearly 10% from its peak [3]. - Analysts suggest that the recent buyback could signal a potential shift back to dividend stocks, as evidenced by other companies like Qin Port Co. also announcing significant share buybacks [4]. Group 3: Analyst Insights - CITIC Securities forecasts that with improved water conditions and reduced depreciation and financial costs, the company's dividends are expected to grow, projecting implied dividend yields of 3.7%, 3.9%, and 4.1% for 2025-2027 [3]. - Multiple brokerages, including Changjiang Securities and GF Securities, have given buy ratings for China Yangtze Power, indicating positive market sentiment [3].

Core Viewpoint - The announcement of a significant share buyback by China Three Gorges Corporation for China Yangtze Power Co., Ltd. indicates confidence in the company's future amidst a fluctuating market environment [1][3][4]. Group 1: Company Actions - China Three Gorges Corporation plans to increase its stake in China Yangtze Power by investing between 40 billion to 80 billion CNY over the next 12 months, utilizing its own and self-raised funds [3][4]. - The company has also announced a shareholder return plan for 2026-2030, committing to distribute no less than 70% of the annual net profit as cash dividends, continuing its previous policy [4]. Group 2: Market Context - The A-share market has seen a surge, with the electronic sector surpassing the banking sector in market capitalization, indicating a shift in investor interest [1][4]. - China Yangtze Power's stock has recently declined by nearly 10% from its peak, prompting speculation about whether the market has adjusted for dividend stocks [2][4]. Group 3: Analyst Insights - Analysts from CITIC Securities expect that improvements in water supply and reductions in depreciation and financial costs will lead to sustained growth in dividends for China Yangtze Power, projecting implied dividend yields of 3.7%, 3.9%, and 4.1% for 2025-2027 [4]. - Other securities firms, including Changjiang Securities and GF Securities, have given buy ratings for the stock, reflecting positive sentiment in the market [4]. Group 4: Broader Market Trends - The recent market rally has been concentrated in AI-related technology stocks, contrasting with the previous focus on dividend stocks, raising questions about potential shifts in market style [6][7]. - The performance of dividend indices has shown resilience, with the CSI Dividend Total Return Index demonstrating a higher annualized return and lower maximum drawdown compared to other indices, suggesting ongoing value in dividend assets [7].

Group 1 - The classic dividend indices, such as the Shanghai Dividend Index and the CSI Dividend Index, rely on dividend yield for stock selection [2] - In recent years, dividend indices have been evolving continuously [3] - Dividend yield is calculated as dividends divided by market capitalization, indicating that the evolution focuses on either dividends or market value (stock price) [4] Group 2 - There are currently three main categories of dividend indices: 1. Dividend + Leader: Companies that are industry leaders with strong competitive advantages and stable dividends [5] 2. Dividend + Quality: Companies with high Return on Equity (ROE) and high dividends, indicating strong profitability and stable dividends [5] 3. Dividend + Growth: Companies with sustained profit growth and increasing dividends [5] - In overseas markets, there are dividend aristocrat indices that select companies with a history of increasing dividends for 10-20 consecutive years, which are not yet present in the domestic market [6] Group 3 - There are stock selection criteria based on industry or company type: 1. Dividend + Industry: For example, consumer dividends, as the consumer sector generally has stronger profitability and stable dividends compared to other sectors [7] 2. Dividend + State-Owned Enterprises: Central and state-owned enterprises have strong competitive advantages in society and stable dividends [7] - The underlying goal of these criteria is to select companies with stable profitability, which in turn leads to more stable dividends [7] Group 4 - There are also criteria based on market value volatility: - Dividend + Low Volatility: In cases of equal returns, lower volatility enhances the investor experience [8]

Core Viewpoint - The article emphasizes the importance of strategic asset allocation for high-net-worth families, highlighting the need for a diversified investment approach to optimize returns and manage risks effectively [1]. Group 1: Industry Insights - The current market environment presents both challenges and opportunities for investors, particularly in sectors such as technology and healthcare, which are expected to drive growth in the coming years [1]. - Interest rates and inflation trends are critical factors influencing investment decisions, with a projected increase in interest rates impacting borrowing costs and investment strategies [1]. Group 2: Company Analysis - Companies that adapt to changing market conditions and consumer preferences are likely to outperform their peers, particularly those investing in innovation and sustainability [1]. - Financial performance metrics, such as revenue growth and profit margins, are essential indicators for assessing company health and potential investment opportunities [1].

Core Viewpoint - The article discusses the recent performance of the A-share and Hong Kong stock markets, highlighting the impact of tax changes on bond yields and the flow of funds into fixed-income assets, particularly those with value styles. Group 1: Market Performance - The overall market experienced a slight decline, with the closing rating at 4.6 stars [1] - Large, mid, and small-cap stocks showed minor declines, indicating low volatility [2] - Dividend and value-style indices in the A-share and Hong Kong markets saw significant increases this week [3] Group 2: Tax Changes and Bond Yields - Starting today, interest on new bonds will be subject to value-added tax, which reduces future yields on pure bonds [4] - This tax change has led to increased capital inflow into fixed-income plus assets [5] - The stock portion of fixed-income plus assets has a value style, contributing to a substantial rise in value style indices this week [6] Group 3: Investment Trends - The reduction in interest income from RMB bonds is expected to benefit Hong Kong dividend stocks [8] - Domestic insurance institutions are utilizing the Hong Kong Stock Connect to invest in dividend stocks, benefiting from lower tax rates compared to individual investors [9] - The recent performance of Hong Kong pharmaceutical stocks has been volatile, with a significant increase of 50-60% compared to A-share counterparts this year [11][14] Group 4: Financing and Market Indicators - The financing balance in A-shares reached 2 trillion yuan, a level not seen since the 2015 bull market [21] - This increase in financing indicates a trend of investors borrowing to invest, which can be a sign of market sentiment [21][29] - The current financing balance represents about 2% of the total A-share market capitalization, which is less than half of the ratio in 2015, suggesting that leverage is not excessively high at this time [28] Group 5: Valuation Insights - The article provides a valuation table for various indices, including dividend indices and value indices, which can be useful for investors [19][36] - The valuation metrics indicate that while some indices are approaching normal high valuations, others remain significantly undervalued [15][17]