Group 1 - The Hong Kong stock market opened lower on August 15, with the Central Enterprise Dividend Index (931233) experiencing a decline of 0.58% as of the report's release. However, the index has seen a year-to-date increase of over 20% as of August 14 [1] - Among the constituent stocks, China Nonferrous Mining rose nearly 4%, with other companies like China Resources Land, China National Building Material, Greentown China, and China Cinda also seeing gains [1] - The Hong Kong Stock Connect Central Enterprise Dividend ETF Tianhong (159281) is currently being issued, with a public offering period from August 6 to August 15, 2025. The management fee is set at 0.5% per year, and the custody fee is 0.1% per year [1] Group 2 - According to Guosen Securities, the Central Enterprise Dividend Index reflects the performance of listed companies controlled by central enterprises with stable dividend levels and high dividend yields within the Hong Kong Stock Connect range. The index is weighted towards mid to large-cap stocks and is evenly distributed across traditional and high-dividend-related industries [2] - The current valuation of the index is low, and the dividend yield is high, indicating a long-term performance that surpasses the broader Hong Kong stock index, showcasing defensive attributes [2] - The high dividend strategy's returns consist of capital gains and dividend income, focusing on mature lifecycle companies that typically exhibit strong profitability resilience and cash flow security, leading to a positive cycle of stable earnings, continuous dividends, and enhanced ROE [2]

Core Viewpoint - The Hong Kong stock market is experiencing active performance in dividend-related concepts, with the Hong Kong Stock Connect Central Enterprise Dividend Index showing a year-to-date increase of 20.17% as of August 13 [1][2]. Group 1: Index and ETF Performance - The Hong Kong Stock Connect Central Enterprise Dividend Index (931233) has risen by 0.66% as of the latest report, with significant contributors including New China Life Insurance and China Overseas Grand Oceans Group [1]. - The Hong Kong Stock Connect Central Enterprise Dividend ETF Tianhong (159281) is currently being issued, with a management fee of 0.5% and a custody fee of 0.1% [1][2]. Group 2: Investment Value of the Index - The index reflects stable dividend levels and high dividend yields from centrally controlled enterprises, making it a favorable investment option within the Hong Kong Stock Connect framework [2]. - The investment value of the index is supported by four main factors: 1. High dividend assets are more attractive in a weak recovery market due to stable cash flows [2]. 2. Central enterprises are increasingly focusing on market performance and dividend expectations as part of their value management [2]. 3. The Hong Kong market has a higher emphasis on dividends compared to the A-share market, with significant differences in dividend ratios and yields [3]. 4. The long-term effectiveness of dividend investment strategies in the Chinese market is supported by historical data showing a 10% annualized return over the past decade [3]. Group 3: Market Comparisons - The Hang Seng Index's dividend yield is currently higher than that of the Shanghai Composite Index, with the Hang Seng High Dividend Yield Index at 6% compared to the 4.6% of the A-share market [3]. - The long-term dividend yield premium of Hong Kong dividend assets over long-term government bonds has remained positive since 2019, indicating a stronger performance compared to A-shares [3].