Core Viewpoint - The report emphasizes the increasing value of dividend assets in the current market environment, highlighting their defensive characteristics and long-term growth potential as the market shifts focus from growth expectations to dividend returns [5][13]. Group 1: Market Performance - The Hong Kong Stock Connect Low Volatility Dividend Index has shown a 0.81% increase over the past day, a 6.93% increase over the past month, and a 32.16% increase over the past year, with an annualized volatility of 12.14% [9]. - The A500 Low Volatility Dividend ETF has recorded a 0.19% increase over the past month and a 6.8% increase over the past year, with an annualized volatility of 8.78% [9]. - The 800 Low Volatility Dividend ETF has seen a 0.35% increase over the past month and a 4.77% increase over the past year, with an annualized volatility of 8.52% [10]. Group 2: Economic Context - In the context of macroeconomic uncertainty and increased market volatility, dividend assets are positioned as a "defensive shield" and a "ballast" for returns, underscoring their defensive value [5][13]. - The shift towards high-quality economic development in China is leading to a market pricing focus that aligns more with dividend returns, similar to trends observed in mature markets [5][13]. Group 3: Fund Performance Metrics - The 300 Cash Flow ETF, which excludes financials and real estate, has shown a 19.47% increase over the past year, with an annualized volatility of 9.77% [12]. - The performance of the 800 Low Volatility Dividend ETF over the past five years includes a 21.56% increase in 2021 and a 30.27% increase projected for 2024 [14].

Core Viewpoint - The market is expected to exhibit a "value plays, growth sings" characteristic from December to January, with large-cap, low-valuation, and cyclical styles likely to dominate due to year-end policy expectations and asset allocation preferences [5][10]. Group 1: Market Trends - The market style is generally balanced during the year-end and beginning of the year, favoring large-cap and low-valuation stocks [10]. - There is an expectation for increased policy support for economic growth as the year ends, aiming for a strong start to the new year [10]. - Major institutional investors are likely to prefer large-cap and dividend-paying assets during this period, making dividend assets suitable for core portfolio allocation [10]. Group 2: Fund Performance - The performance of various ETFs tracking dividend indices shows mixed results, with some indices experiencing positive growth while others face declines [3][4][8]. - The A500 Dividend Low Volatility ETF has shown a near-term performance of -1.30% over the past year, while the Hong Kong Stock Connect Dividend Low Volatility ETF has a one-year increase of 24.43% [3][8]. - The historical performance of dividend indices from 2019 to 2024 indicates varying annual growth rates, with some years showing significant increases, such as 23.12% in 2021 and 27.49% in 2024 for the 800 Dividend Low Volatility Index [11].

Core Viewpoint - The market is anticipating a favorable cross-year trend for 2026, driven by various positive catalysts such as annual reports, policies, interest rates, and market sentiment, establishing the investment theme for the year ahead [5][10]. Group 1: Market Performance - Historical data indicates that the A-share market typically performs well during the cross-year phase, often benefiting from multiple positive catalysts [5][10]. - The recent performance of various indices shows fluctuations, with the Hong Kong low-volatility dividend index experiencing a 25.7% increase over the past year, while the Shanghai Composite Index has seen a 15.44% increase [3][8]. Group 2: Investment Strategies - Institutions generally believe that dividend strategies remain a high-certainty allocation direction for the current phase, with small-cap dividend stocks potentially offering stronger price elasticity and valuation advantages compared to large-cap dividend assets [5][10]. - The report highlights the importance of dividend distribution mechanisms, noting that funds will distribute earnings when the excess return rate exceeds 0.5% [10][11]. Group 3: Fund Performance - The performance of various ETFs tracking dividend indices shows varied results, with the A500 low-volatility dividend ETF showing a 1.74% increase over the past year [3][9]. - The cash flow ETF, which excludes financial and real estate sectors, has shown an 8.32% increase over the past year, indicating strong performance among large-cap blue-chip stocks [4][9].