Core Viewpoint - The Hong Kong Stock Connect Central Enterprise Dividend ETF Tianhong (159281) will be listed on September 2, 2025, providing investors with a new tool to invest in high-dividend central enterprises within the Hong Kong Stock Connect framework [1]. Group 1: Fund Overview - The fund closely tracks the CSI Hong Kong Stock Connect Central Enterprise Dividend Index, which consists of 50 listed companies controlled by central enterprises, selected for their stable dividend levels and high dividend yields [1]. - The index is weighted by dividend yield and has strict requirements for the sustainability of dividends, with a cap on individual sample weights, focusing primarily on the financial and industrial sectors [1]. Group 2: Top Holdings - The top ten weighted stocks in the index include COSCO Shipping Holdings, Orient Overseas International, China National Freight, PetroChina, CITIC Bank, China Pacific Insurance, CNOOC, China Shenhua Energy, China Unicom, and Sinopec Engineering, collectively accounting for 30.47% of the index as of August 29 [1][2]. Group 3: Investment Strategy and Benefits - The index offers a strategic overlay by allowing mainland investors to conveniently invest in scarce high-dividend central enterprise stocks in the Hong Kong market, avoiding QDII quota restrictions [4]. - Central enterprises exhibit strong operational stability and cash flow, demonstrating resilience during macroeconomic fluctuations [4]. - The index's dividend yield as of August 29 is 5.89%, outperforming the 4.29% yield of the CSI Central Enterprise Dividend 50 Index [4]. Group 4: Market Context - The Hong Kong dividend market continues to benefit from inflows of southbound capital, enhancing the investment value of the Hong Kong Stock Connect Central Enterprise Dividend ETF amid weak economic expectations [4]. - The combination of stable dividends, structural opportunities, and supportive government policies contributes to the attractiveness of this investment vehicle for conservative investors seeking stable cash flow and asset preservation [5].

Group 1 - The Hong Kong stock market has recently gained significant attention due to favorable policies and major companies like CATL and BYD listing there, leading to increased market activity [3] - Southbound capital has net purchased over 650 billion HKD in the first five months of the year, indicating strong investment interest [3] - There is a noticeable trend of international capital shifting from US stocks to Hong Kong stocks, attracted by high-growth Chinese assets [3] Group 2 - Key investment areas include the technology sector, particularly artificial intelligence and semiconductors, with companies like Kingsoft Cloud and SMIC experiencing rapid stock price increases [3] - The new consumption trend among younger consumers is shifting towards "emotional consumption," with sectors like trendy toys, smart home products, and experiential tourism gaining traction [3] - High-dividend state-owned enterprises, such as the three major oil companies and telecom operators, provide stable dividends and act as a safety net during market volatility [4] Group 3 - Investment strategies should include using ETFs and funds to mitigate risks, such as the Invesco Hong Kong Technology ETF, which covers multiple tech sub-sectors [4] - The recent reduction in trading fees for small transactions in Hong Kong stocks, effective from June 30, significantly lowers investment costs for retail investors [4] - It is advised to diversify investments across technology, consumption, and finance sectors, and to invest with spare funds without leveraging [5]