- The Hang Seng Hong Kong Stock Connect High Dividend Yield Index aims to reflect the overall performance of Hong Kong-listed securities with high dividend yields that can be traded through the Hong Kong Stock Connect[4][10] - The index was launched on November 18, 2019, with a base date of December 31, 2014, and a base point of 3000 points[4][10] - The index selects the top 50 securities with the highest average net dividend yield over the past three years as constituents[46] - The net dividend yield is calculated as post-tax dividends per share divided by the closing price on the dividend data cut-off date[46] - The index constituents are selected from eligible Hang Seng Composite Index stocks that can be traded under the Stock Connect scheme[46] - The index has a buffer zone where existing constituents ranked below 60 are removed, and new constituents ranked above 40 are added to maintain the number of constituents at 50[46] - The index has shown superior long-term performance compared to the Hang Seng Index, Hang Seng Composite Index, and Hang Seng Stock Connect Index[43][71] - The Hang Seng Hong Kong Stock Connect High Dividend Yield Index has a high dividend yield, with the past 12 months' dividend yield exceeding 6%, compared to other common Hang Seng broad-based indices which mostly range between 2% to 5%[47][49] - The index's annualized volatility is generally lower than other common Hang Seng broad-based indices, with most years since 2018 having an annualized volatility below 24%[76][77] - The index's top ten constituents include companies like COSCO Shipping Holdings, Orient Overseas International, Yancoal Australia, SITC International, Yanzhou Coal Mining, PCCW, Hang Lung Properties, China Feihe, China Hongqiao, and Henderson Land Development[65] - The index's top ten constituents have a combined market capitalization of approximately HKD 10325.86 billion, with a weighted PE (TTM) of 10.05, weighted ROE of 7.62%, and weighted dividend yield of 8.97% over the past 12 months[65] - The index's constituents are mainly distributed in industries such as industrials, financials, energy, real estate, utilities, and telecommunications[55][56] - The index's constituents are primarily large-cap stocks, with 34 out of 50 constituents having a market capitalization above HKD 1000 billion[61][62] - The index's constituents have shown stable growth prospects, with expected revenue growth of 6.58% in 2025 and net profit growth of 4.16% in 2026[67][68][69][70] - The Bosera Hang Seng Hong Kong Stock Connect High Dividend Yield ETF (513690) closely tracks the index, aiming to minimize tracking deviation and tracking error[11][78] - The ETF was listed on May 20, 2021, and is a passive index fund that primarily invests in the index constituents and eligible stocks under the Stock Connect scheme[81] - The ETF's management fee rate is 0.50%, and the custodian fee rate is 0.10%[83]

Macro Economic Overview - In July, China's export year-on-year growth rate continued to show positive growth, with a 6.1% increase from January to July, which is a 0.2 percentage point acceleration compared to the first half of the year. Imports decreased by 2.7%, with the decline narrowing by 1.1 percentage points compared to the first half of the year. The trade surplus reached 683.51 billion USD [6][7] - In July, exports grew by 7.2% year-on-year, with a month-on-month increase of 1.3 percentage points. Imports increased by 4.1% year-on-year, showing a significant month-on-month acceleration of 3.0 percentage points. The trade surplus for July was 98.24 billion USD [6][7] Trade Partners Analysis - ASEAN and EU continued to support China's export growth in July, contributing 2.6 and 1.4 percentage points respectively to the year-on-year growth rate. In contrast, exports to the US decreased by 21.7%, which was a 5.5 percentage point increase in the decline compared to the previous month [7][8] - The total import and export volume with ASEAN in July was 86.03 billion USD, with exports increasing by 16.6% year-on-year. The total with the EU was 74.55 billion USD, with exports rising by 9.2% year-on-year [7] Industry Performance - The overall activity in the A-share merger and acquisition market has decreased, with 50 disclosed merger events totaling 209.01 billion RMB from July 21 to August 3. This represents a decline in both the number and value of significant mergers compared to the previous period [10] - The real estate management and development, basic chemicals, electronic equipment, and textile sectors are highlighted as active areas for mergers and acquisitions [10] Key Stocks - The report lists key stocks for August, including SF Holding (002352.SZ), Satellite Chemical (002648.SZ), and others, indicating potential investment opportunities in these companies [5]

Core Viewpoint - The recent ESG rating results from Huazheng Index indicate that Huangting International (000056.SZ) has received a CC rating, an improvement from the previous C rating, ranking 106 out of 107 companies in the real estate management and development sector [1][3]. Group 1: ESG Rating Overview - Huangting International's current ESG rating is CC, with the previous rating being C [1]. - The company ranks 106 out of 107 in the real estate management and development sector for the latest rating period [1]. Group 2: Detailed Scores - Environmental (E) score: 66.14, rated CCC, ranking 71 out of 107 [3]. - Social (S) score: 74.66, rated B, ranking 97 out of 107 [3]. - Governance (G) score: 61.63, rated CC, ranking 106 out of 107 [3]. Group 3: ESG Rating Context - Huazheng Index is a professional company engaged in index and index investment services, authorized to compile indices for the Shanghai Stock Exchange, Shenzhen Stock Exchange, and Hong Kong Stock Exchange [3]. - The ESG ecosystem alliance established by Securities Star aims to facilitate communication between listed companies, investment institutions, and ESG research and rating agencies [3].

Market Overview - Global monetary policy is gradually shifting towards easing, with signals of a potential interest rate cut in July from Federal Reserve officials and White House representatives [1][5] - Domestic policies aimed at stabilizing growth are being implemented, including excess MLF operations and consumer support policies [1][5] - Overall economic stability and strong foreign trade resilience suggest that both A-shares and Hong Kong stocks are likely to maintain a strong oscillating pattern in the short term [1][5] A-shares Performance - On June 25, A-shares continued to rise, with the Shanghai Composite Index increasing by 1.04% to 3455.97 points, marking a new high for the year [2] - The non-bank financial sector led the gains with a 4.46% increase, driven by policies aimed at enhancing capital market functions and promoting long-term capital inflows [3][4] - The defense and military sector saw a rise of 3.36%, fueled by expectations surrounding the upcoming military parade [3][4] - The computer sector benefited from domestic industrial upgrades and artificial intelligence policies [3][4] Hong Kong Stocks Performance - The Hong Kong market also experienced gains, with the Hang Seng Index rising by 1.23% to 24474.67 points, achieving a three-month high [2] - Consumer services, particularly the comprehensive consumer services sector, surged by 5.1%, indicating increased market confidence in consumption recovery [3][4] - Real estate management and development sectors rose by 2.79% and 3.22%, respectively, reflecting valuation recovery opportunities amid policy easing [3][4] Sector Analysis - Financial stocks performed exceptionally well, particularly brokerage firms benefiting from the approval of virtual asset trading licenses [4] - Education stocks also saw significant increases due to favorable policies supporting debt financing for educational enterprises [4] - In contrast, the biotechnology sector in Hong Kong experienced a slight decline of 0.15%, possibly due to recent valuation adjustments in the pharmaceutical sector [4] - A-shares showed stronger resilience in technology and consumer sectors, especially in artificial intelligence and computing, compared to Hong Kong stocks [4]

Group 1 - The core viewpoint of the articles highlights the increasing popularity of dividend-themed funds as a key investment tool for investors amid a global preference for safe-haven assets and recent interest rate cuts by the central bank [1][2] - The central bank's recent adjustment of the Loan Prime Rate (LPR) and significant reductions in deposit rates have led to a decrease in household savings, prompting a renewed interest in dividend assets and related funds [1] - The Guangfa Stable Strategy fund, managed by Yang Dong, has achieved a return of 11.16% over the past six months, significantly outperforming the benchmark index, which only rose by 2.19% during the same period [1] Group 2 - Yang Dong is recognized for pioneering fundamental quantitative strategies in fund management, combining active stock selection with quantitative models to create a stable, outperforming equity fund [2] - The "active + quantitative" strategy involves subjective analysis for identifying trends and deep dives into individual stock fundamentals, while quantitative strategies utilize style factors to uncover patterns and enhance stock selection [2] - The team led by Yang Dong includes researchers with quantitative backgrounds, contributing to the development of specific style sub-strategies that provide flexibility in the fund's portfolio [2] Group 3 - The Guangfa Stable Strategy fund's holdings reflect a distinctive "active concentration + quantitative dispersion" approach, with a focus on a few concentrated top holdings while maintaining a diversified portfolio [3] - The fund has significantly increased its exposure to Hong Kong stocks, with a notable presence of H-shares in its top holdings, which tend to offer higher dividend yields compared to A-shares [3] - In the first quarter of 2025, the fund underwent a rebalancing, introducing six new stocks across various sectors, demonstrating its broad industry coverage and flexible adjustment capabilities [4]