Core Viewpoint - The high dividend sectors in the Hong Kong stock market have long-term investment value under the current liquidity easing environment, driven by stable earnings in banks and improved supply-demand dynamics in midstream material industries [1] Group 1: High Dividend Sectors - High dividend stocks continue to attract low-cost capital inflows due to declining non-standard investment returns [1] - The banking sector maintains stable profitability and dividend levels, contributing to the attractiveness of high dividend stocks [1] - The PPI stabilization expectations enhance the profitability recovery of companies in the midstream materials sector, such as coke and rebar [1] Group 2: Insurance Sector - The insurance sector shows a strong trend towards concentration among leading companies, with improved performance certainty driven by long-cycle assessments and interest rate cuts [1] Group 3: Investment Products - The Hong Kong Stock Connect High Dividend ETF (159331) tracks the Hong Kong Stock Connect High Dividend Index (930914), which selects 30 liquid stocks with high dividend yields [1] - The index primarily covers traditional high dividend sectors such as banking, ports, and highways, while also including industrial metals and telecom operators [1] - Investors without stock accounts can consider the Cathay CSI Hong Kong Stock Connect High Dividend Investment ETF linked A (022274) and C (022275) [1]

Group 1 - The core viewpoint is that the Hong Kong stock market's high dividend sectors, particularly banks, present investment value due to the weak US dollar and continuous inflow of southbound funds [1] - Insurance capital, as a major source of southbound funds, prefers bank stocks for their stable high dividend characteristics, benefiting from their "quasi-bond" advantage, low volatility, and tax exemptions on dividends [1] - The financial sector has become a core holding for southbound funds, accounting for 19% of their portfolio, as the current low interest rate environment enhances the attractiveness of high dividend strategies [1] Group 2 - The Hong Kong stock market is seen as a representative of core RMB assets, with potential for valuation recovery due to the narrowing of "country risk premium" and the rising pricing power of domestic capital [1] - The Hong Kong Dividend ETF (159331) tracks the Hong Kong Stock Connect High Dividend Index (930914), which selects high dividend yield securities from eligible listed companies to reflect the overall performance of high dividend stocks in Hong Kong [1] - Investors without stock accounts can consider the Cathay CSI Hong Kong Stock Connect High Dividend Investment ETF Initiated Link A (022274) and Link C (022275) [1]

Core Viewpoint - The Hong Kong stock market is expected to experience a structural bull market in the first half of 2025, driven by sectors such as new consumption, innovative pharmaceuticals, and non-bank financials [1] Group 1: Market Dynamics - Southbound funds are becoming a key support force, with their holdings primarily focused on the financial sector, particularly banks, and are beginning to diversify into information technology and communication services [1] - Banks are characterized by low volatility and high dividend strategies, offering stable dividend yields, low volatility, and tax advantages on dividends, with a stable competitive landscape and minimal cyclical impact [1] - Overall, the Hong Kong stock market favors financial and technology sectors, while confidence in cyclical sectors remains weak [1] Group 2: Investment Opportunities - The structural bull market in the Hong Kong stock market is expected to maintain resilience in the second half of the year, with the internationalization of the Renminbi and the value of Hong Kong stocks as core Renminbi assets being long-term highlights [1] - The Hong Kong Dividend ETF (159331) tracks the Hong Kong Stock Connect High Dividend Index (930914), which selects listed companies with a consistent ability to pay high dividends, covering traditional high-dividend sectors such as finance and real estate [1] - Investors without stock accounts can consider the Cathay CSI Hong Kong Stock Connect High Dividend Investment ETF Initiated Link A (022274) and Link C (022275) [1]