Guotai Junan Securities: Hong Kong stock dividend assets are more diverse and cost-effective compared to A-share components.

Guotai Haitong Research Report states that the essence of dividend assets is high-quality companies with stable performance and sustainable cash flow, which can provide investors with stable high dividend returns. Therefore, dividend assets have higher dividend yield levels, sustainable stable cash flow, more stable financial structure, and maintenance of capital expenditure. When comparing dividend assets in the two markets, the cost-effectiveness of Hong Kong stocks is relatively higher. First, the cash dividend payout ratio of Hong Kong stocks is higher than A shares, with an average cash dividend payout ratio of 44% for all Hong Kong stocks from 2017 to 2024, significantly higher than A shares' 36%. Second, compared to A shares, Hong Kong stocks have a clear advantage in dividend yield, with the Hang Seng Index dividend yield at 2.9%, higher than the 1.9% of the Wendel all A Index. Third, the valuation level of dividend assets in Hong Kong stocks is relatively lower, with the Hang Seng High Dividend Yield R Index PE and PB ratios at 7.2 times and 0.6 times respectively, both lower than the 7.9 times and 0.8 times of the CSI Dividend All Return Index. Fourth, Hong Kong stocks have a higher proportion of high dividend assets and a more diverse industry distribution, with only a few industries like banks and petrochemicals having high dividend assets in A shares, while the industry selection of dividend assets in Hong Kong stocks is more diverse.