Group 1 - The domestic equity market has established a policy bottom, but short-term economic resilience expectations are limited due to external demand uncertainties, leading to a structural rotation in the market with a temporary preference for dividend stocks [1] - In June, the market is expected to maintain a range-bound structure, influenced by external shocks and policy support for economic recovery, with a focus on dividend assets and new consumption sectors, as well as low-position opportunities in technology growth [1] - The consumption sector is expected to benefit from a shift in policy focus from supply-side to demand-side, with strong expectations for consumption policies and stable performance in essential consumer industries during the earnings season [1] Group 2 - The pharmaceutical industry is currently undervalued, with an anticipated surge in innovative drugs due to a significant policy shift in centralized procurement, which may open up valuation ceilings and improve performance expectations for domestic innovative drugs [2] - Dividend assets are likely to benefit from a stable fundamental environment and low interest rates, with strong policy support expected to accelerate long-term capital inflows into high-yield assets [2] - The geopolitical uncertainties and potential risks from the "America First" policy have increased the allocation value of defensive assets, suggesting continued interest in defense, food security, security, and gold assets [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]