The allocation logic of high dividend stocks is clear, and may usher in a stronger round of sustained recovery in the market. The Hong Kong Stock Connect Dividend ETF is worth paying attention to.

On February 27, the red dividend ETF of the Hong Kong stock through China Guangfa Securities saw a slight increase in trading volume, with a turnover of 53.094 million yuan by the lunch break. Guotai Haotong Securities pointed out that the bottom of the cyclical coal sector has been confirmed in the second quarter of 2025, with the supply and demand situation showing a turning point, and the downward risks are fully released. Combined with factors such as the optimization of long-term pricing mechanism, the beginning of a global energy cycle, and the rapid increase in AI electricity demand, investment in coal stocks is accelerating its return to the cyclical nature - controllable downside risks, upward elasticity can be expected, strategically looking bullish on the energy cycle in the next 5-10 years. Zhongtai Securities stated that the current higher dividend yield sector is more attractive than long-term government bonds, still at historically low valuations, showing a "horizontal resistance to decline and vertical recovery" trend. In the medium term, the rationale for allocating to the higher dividend yield sector will become clearer. Sectors with low valuations, stable profits, and high dividend certainty may usher in a more sustainable recovery market, rather than a short-term pulse rebound. Data shows that the red dividend ETF of the Hong Kong stock market through China Guangfa Securities closely tracks the CSI Guoxin Hong Kong Stock Connect SOE Red Dividend Index, heavily investing in leading state-owned enterprises such as the three major oil companies, the three major telecom operators, and China Shenhua, showing significant value style and defensive characteristics. It provides investors with a convenient entry point to allocate to Hong Kong dividend assets, allowing for stable returns and long-term value accumulation.