Core Viewpoint - The Hong Kong non-bank financial sector is showing strong performance, with related ETFs experiencing significant gains, indicating investor confidence in this sector [1][2]. Group 1: ETF Performance - The Guangfa CSI Hong Kong Stock Connect Non-Bank Financial Theme ETF (513750) rose over 5% during trading, with a trading volume exceeding 2 billion yuan [1]. - As of July 10, the ETF has achieved a one-year return of 72.90%, ranking in the top 3% among 2,402 passive index funds, with a total size reaching 5.891 billion yuan, a record high since its inception [1]. - The ETF focuses on leading non-bank financial companies within the Hong Kong Stock Connect, with the top ten weighted stocks accounting for 77.92% of the index, predominantly in the insurance sector [1]. Group 2: Financial Metrics - The index's price-to-earnings ratio (PE-TTM) is 9.04, positioned at the 30.25% historical percentile, indicating attractive valuation [1]. - The Hong Kong Stock Connect Non-Bank Index has outperformed most broad-based and sector indices over the past year, showcasing strong resilience and defensive characteristics [1][2]. Group 3: Profitability and Dividend Capacity - The Hong Kong Stock Connect Non-Bank Index exhibits higher profitability and dividend capacity compared to other non-bank indices, with a projected return on equity (ROE) of 11.69% for 2024 and a dividend yield of 4.01% [2]. - The insurance sector is experiencing stable growth in new business value, while the capital market's increased activity is beneficial for brokerage and exchange businesses [2]. Group 4: Other Notable ETFs - Other ETFs under Guangfa Fund have also performed well, with the Guangfa CSI Hong Kong Innovative Drug ETF (513120) returning 103.07% over the past year, and the Guangfa CSI 2000 ETF (560220) returning 59.67% [3].