Market Overview and Key Insights - The Hong Kong dividend sector saw a counter-trend increase last week, with the Hang Seng Hong Kong Stock Connect China Central Enterprises Dividend Total Return Index rising by 1.11%, while the Hang Seng Index fell by 3.96% and the Hang Seng Technology Index dropped by 7.98% [1] - The utility sector led the gains among Hang Seng's primary industries, while the information technology sector experienced the largest decline [1] Investment Perspective - The previous fluctuations in the dividend style may have reached a sufficient correction, making the current investment value more attractive, with capital likely to shift towards Hong Kong dividend stocks [1] - The ongoing U.S.-China tensions may cause short-term market disturbances, and the growth sector has accumulated significant gains, leading to potential profit-taking and capital reallocation [1] - Compared to the growth sector, Hong Kong dividends have shown notable stagnation and even some decline over the past two months, highlighting a more favorable valuation [1] Policy Perspective - Policy support has enhanced the attractiveness of dividend assets, with A-share companies increasing their dividend payouts significantly in 2024, injecting long-term valuation reformation momentum into dividend assets [1] - New regulations on bond value-added tax may indirectly benefit dividend-type assets [1] Funding Perspective - The demand for long-term capital allocation, particularly from insurance funds, is expected to continue, providing stable inflows into dividend assets despite potential shifts in trading capital towards growth sectors [1] Dividend Yield and Valuation - The Hang Seng Hong Kong Stock Connect China Central Enterprises Dividend Index boasts a dividend yield of 6.02% compared to 4.42% for the CSI Dividend Index, with a price-to-book (PB) ratio of 0.61 and a price-to-earnings (PE) ratio of 6.81 [2] - Since the beginning of 2021, the total return index has achieved a cumulative return of 138%, outperforming the Hang Seng Total Return Index by 128% [2] ETF Overview - The Huaan Hong Kong Stock Connect Central Enterprises Dividend ETF (code: 513920) tracks the Hang Seng Hong Kong Stock Connect China Central Enterprises Dividend Index, reflecting the performance of high-dividend securities listed in Hong Kong with state-owned enterprises as the largest shareholders [3] - This ETF is the first in the market to combine the attributes of Hong Kong stocks, central enterprises, and dividends, providing investors with opportunities to capitalize on the valuation reformation of central enterprises [3] Recent Performance of ETF - The performance of the Huaan Hong Kong Stock Connect Central Enterprises Dividend ETF (513920) was noted last week [4] Top Holdings Performance - The top ten weighted stocks in the Hang Seng Hong Kong Stock Connect Central Enterprises Dividend Index showed varied performance, with notable dividend yields and weekly price changes [6]