Capital allocation requirements have become an important factor supporting the dividend sector, with the Hong Kong Stock Connect dividend ETF seeing a continuous increase in trading volume and fund size for three consecutive months.

On January 27, the red chip dividend ETF of Guangfa increased by 0.19% in volume, with a turnover of 90.55 million yuan. Recently, the quarterly report of the red chip dividend ETF of Guangfa was disclosed, with a total of 1.875 billion shares at the end of 2025, with a scale of 1.944 billion yuan. From October to December 2025, the scale and shares increased for three consecutive months. CICC stated that the dividend sector presents a cyclical and structural opportunity when external uncertainties increase or growth styles decline, with a "seesaw" effect between the dividend style and technology growth style. Capital allocation needs will become an important factor supporting the dividend sector, including insurers and bank wealth management increasing their allocation to equity assets in a low interest rate environment, as well as residents transferring their deposits to dividend assets. In addition, the continuous encouragement of dividend-oriented policies in the capital market has increased the willingness and ability of listed companies to distribute dividends, providing fundamental support for the dividend style. The Guangfa red chip dividend ETF and its OTC connections provide investors with a convenient entry point for investing in Hong Kong dividend assets, allowing for stable returns and long-term value.