Core Viewpoint - The strong performance of dividend assets in the Hong Kong market is driven by sustained net inflows from southbound funds, with a particular focus on high-dividend sectors like banking, as investors seek stability amid economic uncertainties [1][3][7]. Group 1: Market Performance - The Hong Kong dividend ETF (159331) saw an intraday increase of over 1.9%, reflecting ongoing investor interest and net inflows [1]. - Southbound funds have net purchased Hong Kong stocks for 17 consecutive days, with total purchases exceeding 696 billion HKD this year [1]. Group 2: Investment Trends - Institutional investors, particularly long-term funds like insurance capital, are showing a rigid demand for dividend assets, which supports price stability [3]. - The shift in asset allocation from growth to return-focused investments is evident as domestic interest rates decline [3]. Group 3: Index Performance - The CSI Hong Kong Stock Connect High Dividend Yield Total Return Index has the highest Sharpe ratio of 0.4754 among related dividend indices, indicating superior risk-adjusted returns [5]. - The index has demonstrated strong long-term compound returns and dividend reinvestment effects since 2017, outperforming other similar indices [3][5]. Group 4: Policy and Market Environment - Recent policies from the Hong Kong government, including stamp duty reductions and trading mechanism optimizations, aim to enhance market liquidity and attractiveness [7]. - The anticipated dividend tax reforms and improvements in international liquidity further enhance the appeal of dividend strategies in the current market environment [7].