Funds flowing into Hong Kong stocks high dividend track, experts warn against two major investment traps.

The remarkable outbreak in the Hong Kong stock market in the first quarter of this year, with the Hang Seng Index rising by as much as 15.25%, has caught people's attention. However, as global capital markets enter a period of turbulence, uncertainties have significantly increased since the second quarter. In this environment, many institutions and securities firms have advised investors to seek out a "safe haven" in times of market volatility by focusing on high dividend-paying companies with stable profit expectations, using these assets as a foundation for their portfolio to secure relatively certain dividend income. However, several experts also warn against the "high dividend trap." Dai Kang, Managing Director of Development Research Center and Chief Asset Research Officer at GF Securities, believes that compared to the A-share and US stock markets, Hong Kong's high dividend strategy has shown more outstanding performance and is a long-term winning strategy. However, traditional high dividend investment methods may result in two major traps, including the "dividend trap" and the "valuation trap," so it is important to carefully select genuine high dividend securities.