Core Viewpoint - The BoShi Hong Kong Dividend ETF (513690) has shown strong performance and liquidity, making it an attractive investment option for both growth-oriented and long-term investors [3][4][5]. Group 1: Performance and Liquidity - As of July 8, 2025, the BoShi Hong Kong Dividend ETF recorded a trading volume of 238 million yuan, ranking first among all Hong Kong dividend products in terms of market liquidity [3]. - The ETF has achieved a year-to-date performance of +14.84%, outperforming most of its peers, with its net asset value reaching new highs [3]. - The ETF's current dividend yield stands at 6.3409%, significantly higher than the 1.64% yield of China's ten-year government bonds, indicating strong long-term allocation value in a low-interest-rate environment [3]. Group 2: Institutional Interest - Recent surveys indicate that 63% of insurance institutions plan to increase their investment in Hong Kong stocks in 2025, with a focus on high-dividend assets [4]. - Insurance capital has made 19 stake acquisitions in 15 listed companies this year, with two-thirds of these being H-shares, which are characterized by low valuations and high dividend yields [4]. - The BoShi Hong Kong Dividend ETF has seen a recent inflow of 476 million yuan over three days, with a peak single-day net inflow of 429 million yuan [4]. Group 3: Historical Performance Metrics - Over the past two years, the BoShi Hong Kong Dividend ETF has experienced a net asset value increase of 40.36%, ranking in the top 4.45% among 2,224 index equity funds [5]. - The ETF's highest monthly return since inception was 24.18%, with an average monthly return of 4.96% during rising months [5]. - As of July 4, 2025, the ETF's Sharpe ratio for the past year was 1.60, indicating a favorable risk-adjusted return [5]. Group 4: Index Tracking - The BoShi Hong Kong Dividend ETF closely tracks the Hang Seng Hong Kong Stock Connect High Dividend Yield Index, which reflects the performance of high-dividend securities listed in Hong Kong [6]. - The top ten weighted stocks in the index account for 28.65% of the total index weight, including companies like Yanzhou Coal Mining and Cheung Kong Property [6].

Core Viewpoint - The Hong Kong dividend ETF market is experiencing positive momentum, driven by government incentives, international monetary easing, and a focus on defensive yield strategies amid rising geopolitical risks [3][4][5][6]. Group 1: Market Performance - The Hong Kong dividend ETF Bosera (513690) increased by 0.58% on July 3, with a turnover rate of 14.91% and a transaction amount of 624 million yuan [1]. - Year-to-date performance for Bosera is +15.17%, with a leading dividend yield of 7.5481%, compared to the current yield of 1.63% for China's ten-year government bonds [2][3]. Group 2: Government Policies - The Hong Kong government has implemented various policies to enhance market attractiveness, including lowering stamp duty and optimizing southbound trading mechanisms, which are expected to improve overall liquidity and market valuation [3]. - Encouragement from the China Securities Regulatory Commission for dividends aims to attract long-term funds such as pensions and insurance into the market [3]. Group 3: International Environment - The initiation of a rate-cutting cycle by the Federal Reserve has improved global liquidity, leading long-term funds to favor stable cash flow assets, making the Hong Kong dividend index an attractive option for both domestic and foreign investors [4]. - Geopolitical tensions and external uncertainties have increased the appeal of dividend strategies as a defensive measure, particularly in sectors like telecommunications, energy, and utilities [5]. Group 4: Trade Dynamics - The escalation of trade tensions, particularly following Trump's push for "reciprocal tariffs," has placed pressure on export-oriented industries, while dividend index constituents, which are less reliant on external demand, show greater resilience [6]. - The combination of local incentives and a favorable international environment supports the strong positioning of dividend assets in the current market landscape [6]. Group 5: Future Outlook - Despite short-term pressures on high-dividend sectors, mid-term prospects remain positive due to the relative attractiveness of dividend yields compared to long-term government bond rates [7]. - The ongoing volatility in U.S. Treasury yields may enhance the relative performance of dividend strategies during periods of market disturbance [7].