Group 1 - The core index of the CSI 300 Dividend Low Volatility Index has shown a slight increase of 0.03% as of July 3, 2025, with notable gains in constituent stocks such as Hu'nong Commercial Bank (up 1.62%) and CITIC Bank (up 1.53%) [1] - The CSI 300 Dividend Low Volatility ETF (515300) has undergone a downward adjustment [1] - The trading volume of the CSI 300 Dividend Low Volatility ETF reached 77.31 million yuan, with a turnover rate of 1.4% [3] Group 2 - As of July 2, 2025, the average daily trading volume of the CSI 300 Dividend Low Volatility ETF over the past month was 138 million yuan, and its latest scale reached 5.529 billion yuan [3] - The CSI 300 Dividend Low Volatility ETF has achieved a net value increase of 75.70% over the past five years, ranking 45th out of 993 index equity funds, placing it in the top 4.53% [3] - The ETF has recorded a maximum monthly return of 13.89% since its inception, with the longest consecutive monthly gains being five months and an average monthly return of 3.66% [3] Group 3 - The top ten weighted stocks in the CSI 300 Dividend Low Volatility Index include China Shenhua, Gree Electric, and Sinopec, collectively accounting for 35.21% of the index [3] - The performance of high-dividend sectors has shown internal differentiation, with banks and non-banks performing relatively well [6] - The ongoing policy support is expected to increase the scale of long-term funds entering the market, favoring dividend assets as stable low-risk investments [5]

Group 1 - The Hong Kong stock market indices collectively rose, with the dividend sector performing strongly and southbound capital inflows increasing significantly [1] - The Hong Kong Dividend Low Volatility ETF (520550) recorded a 10-day consecutive rise, with net inflows for 8 consecutive days, leading to a 156.82% growth in fund size since its inception [1] - Southbound capital has exceeded HKD 660 billion in net purchases year-to-date, surpassing 80% of last year's total [1] Group 2 - The Hong Kong Dividend Low Volatility ETF (520550) offers the lowest market fee rate (comprehensive fee rate of 0.2%), enhancing cost efficiency for investors [2] - The ETF's monthly dividend mechanism and T+0 trading feature improve capital efficiency, while its holding structure provides a safety net through mature sectors like finance and energy [2] - A new off-market fund linked to the ETF is being issued from June 13 to June 26, providing investors with additional options for long-term investments in quality dividend assets [2]

Group 1 - The Hong Kong stock market has shown resilience since June, with significant inflows from southbound funds, totaling over 660 billion HKD year-to-date, surpassing 80% of last year's total [1] - The Hong Kong Dividend Low Volatility ETF (520550) has seen a 0.44% increase, reaching a historical high, and has expanded its shares by 106.69% since its listing [1] - Dongxing Securities indicates that ongoing policy support is expected to increase the scale of long-term funds entering the market, favoring dividend assets for their stable returns [1] Group 2 - The Hong Kong Dividend Low Volatility ETF (520550) offers the lowest market fee rate at 0.2%, enhancing cost efficiency for investors [2] - The ETF's structure includes a weight limit of 5% per stock to mitigate risks and avoid "dividend yield traps," focusing on mature sectors like finance and energy [2] - A new off-market fund linked to the ETF is set to be issued from June 13 to June 26, providing investors with additional options for long-term investments in quality dividend assets [2]

Investment Rating - The report maintains a "Positive" outlook on the coal industry [2] Core Viewpoints - The coal sector has experienced a significant decline of 11.98% from January 1 to June 3, 2025, underperforming the CSI 300 index by 9.87 percentage points [3][17] - The fundamentals indicate a strong supply and weak demand for thermal coal, with policies and initiatives from coal associations expected to stabilize and rebound coal prices [4][26] - The valuation of the coal sector has increased but remains at a low level, with a current PE ratio of 11.26, which is higher than historical lows but below the median [5][53] Summary by Sections 1. Market Performance - The coal sector has underperformed the broader market, with a cumulative decline of 11.98% compared to a 2.11% drop in the CSI 300 index [3][17] 2. Fundamental Outlook - Thermal coal prices have been on a downward trend due to weak demand influenced by a warm winter and increased renewable energy output [4][18] - The introduction of long-term coal contracts has helped stabilize prices, with the long-term price consistently above market prices since March 2025 [4][27] - Domestic coal production has increased, with significant contributions from Shanxi and Xinjiang, leading to a year-on-year growth of 8.78% in total coal output [4][29] - The demand for coal is expected to rebound with the arrival of summer, as both thermal and non-thermal coal needs are anticipated to rise [4][34] 3. Valuation Outlook - The coal sector's valuation has improved but is still considered low, with a PE ratio of 11.26 and a PB ratio of 1.32, both below their historical medians [5][56] - The focus on shareholder returns and cash flow is shifting the capital market's pricing mechanism, which may lead to a revaluation of cyclical stocks [5][53] 4. Investment Recommendations - The report suggests focusing on high-dividend and high-yield stocks within the coal sector, which are seen as stable investment options amid economic challenges [6][64] - Key companies recommended for investment include China Shenhua and Shaanxi Coal, which are expected to benefit from stable long-term contracts and effective cost management [8][67]