Funds actively deploy, high-dividend stocks welcome the strongest period of the year! It is worth paying attention to the Hong Kong Stock Connect Dividend ETF by GF Fund.

In the current environment of weak economic recovery, uncertainty in overseas liquidity and domestic policies, the defensive properties of Hong Kong dividend assets are expected to continue attracting attention from investors. On December 2nd, Hong Kong stocks in high dividend sectors such as banks, non-bank financials, coal, and oil and petrochemicals collectively rose. The Hong Kong Stock Connect Dividend ETF saw a significant increase in trading volume, with an intraday increase of over 1.6%. In terms of fund flows, it has received net inflows for 7 consecutive weeks as of last week. As the Federal Reserve's December interest rate meeting approaches, the market's speculation on monetary policy intensifies, leading to increased volatility in global capital markets. In this context, investors' risk preferences are quietly changing, with funds flowing into Hong Kong dividend assets of state-owned enterprises to seek certainty of returns. The reason why Hong Kong dividend assets are attracting funds is due to their increasingly prominent high dividend advantage in a low interest rate environment. The Hong Kong Stock Connect Dividend ETF closely tracks the CSI Guoxin Hong Kong Stock Connect SOE Dividend Index. The central dividend yield of the index has increased significantly from 3%-4% in 2015 to 5%-9% from 2023-2025, reflecting the continuous strengthening of state-owned enterprises' dividend capabilities. In the current market environment of declining risk-free rates and increased stock market volatility at year-end, index tools such as the Guangfa Hong Kong Stock Connect Dividend ETF tracking this index may be a good time for allocation. Guotai Junan Securities pointed out that the dividend sector of Hong Kong stocks usually exhibits a significant calendar effect from year-end to mid-January of the following year. This phenomenon is mainly driven by three factors: approaching year-end, public institutions may decrease their holdings of growth assets and allocate more to high dividend sectors for defense; from December to January, insurance companies see a peak in premium income, and insurance assets tend to allocate more funds to high dividend assets to match liability costs. Xiangcai Securities stated that in a market correction scenario, the market's attention to high dividend, low volatility assets has increased, with dividend assets demonstrating good stability, and optimism remains for the resilience of dividend markets at year-end. The Hong Kong Stock Connect Dividend ETF and its off-exchange linkages provide investors with a convenient entry point for investing in Hong Kong dividend assets, allowing for steady returns and long-term value.