Report Industry Investment Rating No relevant content provided. Core Views of the Report - Overseas: The Fed announced an expected rate cut but hinted at no rush for rapid cuts in the coming months. The US initial jobless claims had the largest decline in nearly four years, the US dollar index continued to rebound, and global risk appetite increased. Domestically: China's August consumption, January - August investment, and industrial added - value growth were all lower than previous values and market expectations, with domestic demand continuing to slow. However, short - term external risk uncertainty decreased and domestic easing expectations increased, leading to an overall rise in domestic risk appetite. The recent market trading logic focuses on domestic incremental stimulus policies and easing expectations, with short - term macro upward drivers strengthening. [2] - For assets: The stock index is expected to fluctuate in the short term, with cautious short - term long positions. Treasury bonds will fluctuate in the short term, and it's advisable to watch cautiously. In the commodity sector, black, non - ferrous, and energy - chemical products will fluctuate in the short term, with cautious short - term watching; precious metals will fluctuate strongly at high levels in the short term, with cautious short - term long positions. [2] Summary by Related Catalogs Macro Finance - Overseas: The Fed's rate cut, large decline in initial jobless claims led to the US dollar index rebound and increased global risk appetite. Domestically: Consumption, investment, and industrial added - value growth were lower than expected, with domestic demand slowing. Policies like the measures to expand service consumption were introduced. The trading logic focuses on domestic policies and easing expectations, with short - term upward drivers strengthening. [2] - Asset Recommendations: Stock index - short - term fluctuation, cautious short - term long; Treasury bonds - short - term fluctuation, cautious watching; black - short - term fluctuation, cautious watching; non - ferrous - short - term fluctuation, cautious watching; energy - chemical - short - term fluctuation, cautious watching; precious metals - short - term high - level strong fluctuation, cautious long. [2] Stock Index - The domestic stock market declined slightly due to the drag of sectors like humanoid robots, automobiles, and biomedicine. Fundamentals showed slow domestic demand. Policies aimed at expanding service consumption were introduced. Risk appetite increased. The trading logic focuses on policies and easing expectations, with short - term upward drivers strengthening. Short - term cautious long positions are recommended. [3] Black Metal - **Steel**: The steel futures and spot markets rebounded slightly. The Sino - US leaders' call and national meeting boosted market sentiment. Demand improved slightly but varied by variety, and supply decreased slightly. There were rumors of production restrictions in Tangshan. The market is likely to fluctuate in the short term. [4] - **Iron Ore**: Futures and spot prices rebounded. Steel mill profits narrowed but didn't trigger production cuts, and iron ore inventory increased due to pre - holiday restocking. Supply remained high, and port inventory increased slightly. The price will fluctuate in the short term. [4][5] - **Glass**: The glass market had stable supply and slightly improved demand but limited increments. With repeated policy sentiment, it will fluctuate in the short term. [6] Non - Ferrous and New Energy - **Copper**: The Fed's rate cut and positive Sino - US - Spanish economic and trade talks boosted market sentiment. However, copper demand may decline marginally, and the US economic slowdown restricts upward space. [7] - **Aluminum**: The price was flat. The recent increase was due to the Fed's rate cut and copper price spill - over, but the fundamentals are weak with increasing inventory. [7] - **Silicon Manganese/Silicon Ferrosilicon**: Spot prices were flat, and futures prices declined slightly. Supply increased slightly. Silicon ferrosilicon prices were supported by cost, and the market will continue to fluctuate. [8] - **Soda Ash**: The market had high supply, high inventory, and weak demand. In the short term, supply and demand will increase with the arrival of the peak season and upstream maintenance. In the long term, supply - side contradictions will drag down the price. [8] - **Aluminum Alloy**: Waste aluminum supply is tight, and demand is weak in the off - season. The price will fluctuate strongly in the short term but with limited upward space. [9] - **Tin**: Supply - side开工率 was low but expected to recover. Demand was weak. Inventory decreased significantly this week. The price will fluctuate in the short term with limited upward space. [9] - **Lithium Carbonate**: Production reached a new high, and inventory decreased slightly. Supply and demand increased, and the market will fluctuate strongly with attention to the upper pressure range. [10] - **Industrial Silicon**: Production increased, and inventory increased slightly. Supply and demand increased, and the price will fluctuate strongly in the short term. [10] - **Polysilicon**: The downstream prices changed, and inventory decreased slightly. There were rumors of storage and capacity reduction policies. It's easy to rise and difficult to fall, and it's advisable to go long at low prices. [11] Energy and Chemical - **Crude Oil**: The Fed's rate cut, good US inventory data, and geopolitical risks in Venezuela and Russia provided support to oil prices. The price will fluctuate with support in the short term. [12] - **Asphalt**: The price followed the stable oil price with limited upward space. Basis is decreasing, and inventory is not significantly reduced. It's necessary to pay attention to the follow - up increase with oil prices. [13][14] - **PX**: It will fluctuate weakly with support. The PXN spread decreased, and the polyester market declined. [8] - **PTA**: Downstream demand was weak, and inventory increased. However, low processing fees led to more maintenance plans, and there is support at the previous low. The price may decline in the short term. [8] - **Ethylene Glycol**: Port inventory increased, and demand was weak. The price will continue to fluctuate. [15] - **Short - Fibre**: It adjusted with the polyester sector. Terminal orders increased seasonally, and inventory increased slightly. The upward space is limited. [15] - **Methanol**: Supply was in excess, and high inventory pressured the price. [15] - **PP**: Production decreased due to maintenance, and downstream demand improved. However, supply remained loose, and the price will fluctuate weakly in the short term. [15] - **LLDPE**: Supply increased, and demand was weak. With low inventory and stable oil prices, the price will fluctuate weakly. [16] - **Urea**: Supply was strong, demand was weak, and inventory was divided. The market is under pressure in the short term. [16][17] Agricultural Products - **US Soybeans**: At the beginning of the US soybean listing, there were expectations of a decrease in the USDA - estimated yield. However, new harvests and lack of Chinese orders will increase downward pressure. [17] - **Soybean and Rapeseed Meal**: The domestic short - term supply was in excess. It's expected to stabilize in late September and October due to supply contraction in the fourth quarter and potential adjustment of the USDA - estimated yield. Rapeseed meal follows the soybean meal market. [17] - **Oils and Fats**: International oil and oilseed prices weakened. Palm oil production may recover, and exports decreased. Domestic palm oil demand weakened, and inventory increased. Soybean oil supply was sufficient, and consumption support was limited. The market for rapeseed oil was cautious. The domestic oil market will fluctuate with downward pressure. [17] - **Corn**: The new corn in Northeast China was listed smoothly, and the price was stable. The price in North China continued to fall but at a slower pace. The price in the sales area was stable. There is an expectation of price decline during the concentrated listing period from mid - October to November. [17] - **Pork**: With pork purchases for storage and pre - holiday stocking, the pork price may have a phased stable rebound. [17]

Market Overview - On September 19, Hong Kong's three major indices experienced fluctuations, with the Hang Seng Index closing at 26,545.1 points, the Hang Seng Tech Index rising by 0.37% to 6,294.42 points, and the National Enterprises Index increasing by 0.17% to 9,472.35 points. The materials sector remained active while pharmaceutical stocks weakened significantly. For the week, the Hang Seng Index rose by 0.59%, the Hang Seng Tech Index increased by 5.09%, and the National Enterprises Index gained 1.15% [1] Southbound Capital - On September 19, southbound funds net bought Hong Kong stocks worth 9.838 billion HKD, with Alibaba receiving a net purchase of 1.727 billion HKD. For the week up to September 19, the cumulative net purchase by southbound funds reached 36.851 billion HKD, and the total for the year so far is 1,109.73 billion HKD, significantly exceeding last year's total net purchase [2] U.S. Market Performance - Overnight, U.S. stock indices reached new closing highs, with the Dow Jones up by 0.37%, the S&P 500 rising by 0.49%, and the Nasdaq increasing by 0.72%. Notable gains were seen in Amgen and Apple, both rising over 3%. The Nasdaq China Golden Dragon Index fell by 0.25%, while the Hang Seng Index ADR decreased, closing at 26,462.40 points, down 82.70 points or 0.31% [3] Key News 1. The 2025 Alibaba Cloud Summit will be held from September 24 to 26 in Hangzhou, focusing on AI, cloud computing, and industry applications, featuring three main forums and over 110 discussion topics [4] 2. Taobao Flash Sale and Ele.me will launch a merchant group-buying service, starting with restaurant group buys in major cities [4] 3. The Hang Seng Index Company reported over 1 trillion HKD in net inflows for the Hong Kong Stock Connect this year, indicating a strong trend of capital inflow over the past two years [4] Short Selling Data - On September 19, a total of 648 Hong Kong stocks were short-sold, with a total short-selling amount of 38.141 billion HKD. Alibaba, Baidu, and Xiaomi had the highest short-selling amounts, at 3.598 billion HKD, 2.53 billion HKD, and 1.466 billion HKD, respectively [5] Institutional Insights - Guotai Junan Securities indicated that the Hang Seng Tech Index is likely to transition from "catching up" to "leading." The observation of the divergence in returns between the ChiNext Index and the Hang Seng Tech Index suggests a high probability of relative return reversal for the latter. Additionally, foreign capital's interest in Chinese assets is increasing, with expectations of a Fed rate cut in September potentially alleviating liquidity issues faced by Hong Kong stocks since August [6]

Market Overview - The market experienced fluctuations last week, with the Shanghai Composite Index falling by 1.30%, while sectors like power equipment, electronics, and communications continued to lead in gains, contrasting with the underperforming banking, non-banking, and food and beverage sectors [1] Broker Strategies - Guotai Junan Securities believes that the recent market adjustment presents an opportunity, asserting that the Chinese stock market will not stop here. They highlight the positive implications of the recent US-China talks and the potential for capital market reforms to accelerate, suggesting that the A/H share indices may reach new highs [2] - Guojin Securities indicates that a bull market is in the making, with a focus on cyclical opportunities in manufacturing and a shift from technology-driven growth to export-oriented growth as liquidity constraints ease [2] - Zheshang Securities anticipates continued consolidation in the Shanghai Composite Index, recommending a cautious approach and suggesting adjustments in sector allocations, particularly reducing exposure to technology and media while increasing positions in real estate and infrastructure [3] - Everbright Securities expects the A-share market to maintain a volatile pattern leading up to the National Day holiday, with a focus on structural balance amid potential profit-taking [4] - China Merchants Securities notes a historical pattern of financing trends around the National Day holiday, suggesting a potential rebound in market sentiment post-holiday, with a focus on sectors like solid-state batteries and AI [5] - Industrial Securities emphasizes a rotational investment strategy to navigate market volatility, advocating for a diversified approach across multiple sectors [6][7] - CITIC Securities highlights the clarity in market trading themes following the Fed's interest rate cut, with a focus on AI and domestic demand recovery as key drivers [8] - Huaxia Securities maintains a positive long-term outlook despite short-term fluctuations, emphasizing the importance of structural support from policies aimed at stabilizing the stock market [9] - Galaxy Securities recommends four main investment themes in the construction sector during the 14th Five-Year Plan period, focusing on urban renewal and digital transformation in construction [11]

Group 1 - The overall industry selection framework remains focused on resources, new productive forces, and globalization [1] - Resource stocks are shifting from cyclical attributes to dividend attributes due to supply constraints and global geopolitical tensions, leading to a revaluation of the valuation system [1] - The globalization of China's manufacturing leaders is expected to convert market share advantages into pricing power and profit margin improvements, resulting in market capitalization growth beyond domestic economic fundamentals [1] Group 2 - The Chinese stock market is expected to continue its upward trajectory, driven by the demand for assets and capital market reforms aimed at improving investor returns [2] - The recent communication between Chinese and U.S. leaders indicates a stabilization of short-term risk outlook, while a weak dollar and overseas rate cuts favor China's monetary easing [2] - The market adjustment is viewed as an opportunity, with expectations for A/H shares to reach new highs [2] Group 3 - The current market is in a consolidation phase following recent highs, with a positive funding environment being crucial for the sustainability of the market [3] - The focus remains on maintaining a high position in the market, with an emphasis on balanced sector selection and monitoring the continuation of third-quarter report performance [3] - Key sectors to watch include domestic computing power chains, innovative pharmaceuticals, robotics, chemicals, batteries, and leading consumer stocks [3] Group 4 - The three main drivers of the current upward trend in the A-share market remain unchanged, with a historical tendency for the market to rise following preemptive rate cuts by the Federal Reserve [4] - Attention is drawn to solid-state batteries, AI computing power, humanoid robots, and commercial aerospace as potential growth areas [4] - The market is expected to continue along low penetration paths until a significant policy shift occurs [4] Group 5 - Both domestic and foreign capital have significantly flowed into the Chinese stock market, with a notable inflow from domestic investors [5] - The recent decrease in positions in the CSI 300 options market indicates a cautious outlook on upward potential beyond 4250 points [5] - Overall, the long-term bullish sentiment on the CSI 300 remains intact despite short-term adjustments [5] Group 6 - The market is currently characterized by sector rotation rather than a clear upward or downward trend, with a focus on individual stocks rather than indices [6] - Key sectors to monitor include humanoid robots, AI, pig farming, new energy, new consumption, innovative pharmaceuticals, non-ferrous metals, and basic chemicals [6] - The market is expected to continue its rotation and maintain a focus on stocks that resist adjustment [6] Group 7 - The current market conditions suggest that a recovery in corporate earnings may be in the making, indicating the potential for a bull market [7] - Opportunities are anticipated in upstream resources, capital goods, and raw materials due to improved operating conditions and investment acceleration [7] - Consumer-related sectors such as food and beverage, tourism, and scenic spots are also expected to present investment opportunities [7] Group 8 - The market is experiencing structural differentiation and requires consolidation, with a focus on identifying opportunities based on industry trends rather than simple positional switching [8] - The behavior of funds has shifted from moving within a static market to expanding in a growing market, indicating a more dynamic investment environment [8] - The focus is on exploring undervalued segments within leading styles and enhancing the profitability of these styles [8] Group 9 - The potential for low-level rebounds is increasing as the market transitions into the fourth quarter, with a more balanced structural style anticipated [9] - Historical trends suggest that leading stocks from the third quarter may not continue their upward momentum into the fourth quarter [9] - The Hang Seng Tech index is expected to catch up and potentially outperform in the low-level direction during September and October [9] Group 10 - The recovery of free cash flow in export-advantaged manufacturing sectors is anticipated due to fiscal support and capital expenditure reductions [10] - The revaluation of China's export-advantaged manufacturing sector is expected as the anti-involution policies take effect [10] - The main investment themes include hard currency assets, hard technology, and Chinese manufacturing benefiting from anti-involution [11]

Core Viewpoint - The report from CITIC Securities indicates that after the Federal Reserve's interest rate cut, the "15th Five-Year Plan" is expected to become a focal point for the market, emphasizing anti-involution, service consumption, boosting domestic demand, and industrial upgrades [1] Market Sentiment - Overall market sentiment remains high, with no significant signs of peak or decline, while indices are experiencing narrow fluctuations at high levels [1] - Individual stocks and sectors are showing considerable volatility [1] Investment Strategy - As risks increase in high-positioned sectors, the strategy suggests focusing less on indices and more on individual stocks [1] - It is recommended to position in low-positioned sectors and focus on stocks related to "refusing adjustments" [1] Industry Focus - Key industries to watch include humanoid robots, AI, pig farming, new energy, new consumption, innovative pharmaceuticals, non-ferrous metals, basic chemicals, and non-bank financials [1]

Market Overview - The market experienced fluctuations last week, with the Shanghai Composite Index falling by 1.30%, while sectors like power equipment, electronics, and communications continued to lead in gains, contrasting with stagnant performance in banking, non-banking, and food and beverage sectors [1] Broker Insights - Guotai Junan Securities believes that the recent market adjustment presents an opportunity, asserting that the Chinese stock market will not stagnate and is expected to reach new highs, driven by favorable conditions such as a stable short-term risk outlook and potential capital market reforms [1] - Guojin Securities indicates that a bull market may be in the making, with opportunities arising from the easing of liquidity constraints and a shift towards cyclical manufacturing sectors like non-ferrous metals, machinery, and chemicals [2] - Zheshang Securities suggests a period of consolidation for the Shanghai Composite Index, recommending a cautious approach to investment and a focus on sectors like hard technology and infrastructure [3] - Everbright Securities anticipates continued market fluctuations leading up to the National Day holiday, with a tendency for funds to secure profits amid uncertainties [4] - According to China Merchants Securities, historical patterns suggest that financing activities typically contract before the holiday and surge afterward, with a focus on sectors like solid-state batteries and AI [5] - Industrial rotation is emphasized by Industrial Securities, advocating for a diversified approach to investment to navigate market volatility [6][7] - CITIC Construction Investment highlights the clarity in future market trends following the Federal Reserve's interest rate cuts, with a focus on AI and domestic demand recovery [8] - Huaxia Securities maintains a positive long-term outlook despite short-term fluctuations, emphasizing the importance of sectors like AI and essential materials [9] - Galaxy Securities recommends four investment themes in the construction sector, focusing on urban renewal and digital transformation in construction [10]

Group 1 - The overall industry selection framework focuses on resources, new productive forces, and globalization [1][2] - Resource stocks are shifting from cyclical attributes to dividend attributes due to supply constraints and global geopolitical tensions [1] - The globalization of China's manufacturing leaders is expected to enhance pricing power and profit margins, leading to market capitalization growth beyond domestic economic fundamentals [1][2] Group 2 - The Chinese stock market is expected to continue its upward trajectory, driven by the demand for assets and capital market reforms aimed at improving investor returns [2][3] - Recent communication between Chinese and U.S. leaders indicates a stabilization of short-term risks, while a weak dollar and overseas rate cuts favor China's monetary easing [2] - The market is anticipated to experience adjustments that present opportunities, with A/H indices likely to reach new highs [2][3] Group 3 - The current market remains in a consolidation phase, with active trading and a positive funding environment [3][4] - The key to sustaining the market's upward momentum lies in the profitability of investments, with a focus on sectors like domestic computing, innovative pharmaceuticals, and consumer goods [3][4] - The market is still in a bull phase, with three main drivers for the current upward trend remaining unchanged [4][5] Group 4 - Foreign capital continues to flow into the Chinese stock market, with significant inflows from both domestic and foreign investors [5][6] - The recent decline in high-priced options indicates a cautious approach among investors regarding the upward potential of the market [5][6] - The overall sentiment remains bullish for the long term, despite short-term adjustments [5][6] Group 5 - The market is characterized by sector rotation rather than a simple switch from high to low positions, focusing on industry trends and profitability [6][9] - The emphasis is on identifying opportunities within sectors that are experiencing growth and have not been fully priced in [9][10] - The potential for low-position stocks to experience a rebound is increasing as the market transitions into the fourth quarter [10][11] Group 6 - The recovery of cash flow in export-oriented manufacturing is expected to continue, driven by anti-involution policies and global re-industrialization [11] - The valuation system for China's advantageous manufacturing sectors is likely to be systematically reshaped [11] - The main investment themes include hard currency assets, hard technology, and manufacturing benefiting from anti-involution policies [11]

Market Overview - A-shares experienced a mixed performance last week, with the Shanghai Composite Index declining by 1.30% to close at 3820.09 points, while the Shenzhen Component Index rose by 1.14% and the ChiNext Index increased by 2.34% [2] - The market showed overall volatility in the first half of the week, but retreated towards the end as investors reacted to the Federal Reserve's interest rate cut [2][3] Federal Reserve Impact - The Federal Reserve's decision to cut interest rates by 25 basis points was in line with market expectations, leading to a temporary cooling of investor sentiment and risk appetite [3][4] - Despite short-term fluctuations, the long-term outlook remains positive for A-shares, with expectations of a stronger RMB and improved market risk appetite [3][4] Calendar Effects - Historical data indicates that A-shares typically exhibit a calendar effect around the National Day holiday, with a tendency for the market to perform poorly before the holiday and rebound afterward [5][6] - Over the past decade, indices such as the Shanghai Composite and CSI 300 have shown over 60% probability of rising in the week following the National Day holiday [5] Sector Performance - Certain sectors, particularly technology-related industries such as computers, communications, and electronics, have a higher probability of rising in the five trading days following the holiday [6] - Financial sectors, including banks and non-bank financials, are also expected to perform well in the weeks following the holiday [6] Investment Strategy - The fourth quarter is anticipated to see a shift in investment styles, with a potential rotation from previously high-performing sectors to more defensive ones [7] - Investors are encouraged to focus on sectors driven by economic recovery and industry trends, such as AI, innovative pharmaceuticals, new energy, and consumer sectors [7]

Group 1 - The brokerage strategies remain positive, addressing market concerns such as high-low switching, market style in Q4, and the pace of retail investor entry [1] - The strategy team from Xingzheng emphasizes that the current market rotation is driven by incremental funds and economic advantages, focusing on identifying opportunities based on economic logic and industry trends rather than simple position switching [1][7] - The Citic strategy team highlights the importance of the globalization of leading Chinese manufacturing firms, which is expected to enhance pricing power and profit margins, leading to market capitalization growth beyond domestic economic fundamentals [1][7] Group 2 - The strategy team from招商策略 notes that the Federal Reserve's interest rate cut in September historically correlates with a higher probability of A/H shares rising in the future [4] - Historical data indicates that the market tends to be relatively flat before the National Day holiday, but risk appetite improves significantly afterward, with over 60% probability of gains in major indices during the week following the holiday [4][8] - The strategy team from广发分析 suggests that the current rise in retail investor sentiment is still in its early stages, with various indicators showing that the market is not yet experiencing significant capital outflow from savings [1][9] Group 3 - The strategy from信达 suggests that the market is likely to continue its upward trend, with the current environment favoring strong industry trends while maintaining flexibility in high-low switching strategies [8] - The analysis indicates that the market is currently in a bull phase, with expectations of increased retail investment in the coming year, supported by a favorable policy environment [8] - The strategy team from国全策略 believes that the true bull market has not yet begun, but signs of recovery in corporate earnings and the potential for a new market cycle are emerging [9]

Macro Overview - Overall consumption is improving, with notable increases in automobile retail and high-end liquor prices due to seasonal demand and base effects [4] - Service consumption indicators such as urban population flow and movie box office revenues are also showing improvement, although inter-city migration indices have turned negative year-on-year [4] - Investment in infrastructure is accelerating with special bond issuance, while real estate sales are recovering during the peak season, despite a cooling land market and low construction start data [4] - Production across most industries is declining, with sectors like power generation and steel adjusting due to demand or profit impacts [4] - Inventory levels are primarily focused on replenishment, with industrial prices rising and CPI showing divergence [4] - The dollar index has slightly increased, while the RMB has appreciated moderately [4] Strategy Insights - Market adjustments present opportunities, and the Chinese stock market is expected to continue its upward trajectory [7] - The "transformation bull market" is driven by the demand for assets and capital market reforms aimed at improving investor returns [7] - Recent communication between Chinese and U.S. leaders indicates a stabilization of short-term risks, while a weak dollar and overseas interest rate cuts favor Chinese monetary easing [7] - The consensus on economic expectations is overly cautious, but there are signs of stabilization in revenue and inventory growth for Chinese listed companies [8] - Emerging industries are entering a new capital expenditure expansion cycle, indicating increased certainty in economic development [9] Industry Comparisons - The technology sector remains a key focus, with recommendations for investments in internet, semiconductor, innovative pharmaceuticals, and robotics [9] - Financial stocks are suggested for gradual allocation due to potential increases in dividend returns after recent adjustments [9] - The shift in economic governance is expected to improve supply-demand dynamics for cyclical goods such as non-ferrous metals, chemicals, real estate, and new energy [9] - Recommendations for consumer sectors include national brands in retail and cosmetics, as well as traditional categories like agriculture and food and beverage [9] Thematic Recommendations - Positive outlook on domestic computing power infrastructure and increased penetration of domestic supply chains [10] - Favorable conditions for commercial aerospace investments due to satellite communication license issuance [10] - Anticipation of improved pricing expectations in sectors benefiting from economic governance changes, such as lithium batteries and energy storage [10] - Growth in embodied intelligence with accelerated equity financing in robotics and logistics [10] Hong Kong Dividend Assets - Hong Kong dividend assets are characterized by stable performance and sustainable cash flows, offering higher dividend yields compared to A-shares [15] - The average cash dividend payout ratio for Hong Kong stocks from 2017 to 2024 is 44%, significantly higher than A-shares at 36% [15] - The dividend yield for the Hang Seng Index is 2.9%, compared to 1.9% for the Wind All A Index, indicating a clear advantage for Hong Kong stocks [15] - Hong Kong dividend assets have a lower valuation level, with PE and PB ratios of 7.2x and 0.6x, respectively, compared to 7.9x and 0.8x for the CSI Dividend All Return Index [15] Market Dynamics - Both Hong Kong and A-share dividend assets exhibit defensive characteristics in weak markets, but absolute returns are positively correlated with market performance [16] - Hong Kong dividend assets face higher taxation and are more sensitive to U.S. Treasury yields compared to A-shares [16] - Current market conditions suggest that Hong Kong dividend assets may offer better value for allocation, especially as institutional demand for dividend stocks increases [17] - Long-term trends indicate a strengthening of dividend policies and a low-interest environment, enhancing the appeal of Hong Kong dividend assets for sustained investment [17]