Market Review and Key Views: In Hong Kong stocks, the Hang Seng Stock Connect China Central SOEs Dividend Index fell 0.24% last week, while the Hang Seng Index rose 0.68%, and the Hang Seng Tech Index declined 2.07%. For A-shares, the CSI State-Owned Enterprises Dividend Index dropped 1.47%, and the CSI 300 decreased 1.37%. (Data source: Wind, as of 2026/4/3; all figures represent total return index performance.)
The Hang Seng Stock Connect China Central SOEs Dividend Index demonstrated relative stability last week. In a market environment dominated by low interest rates and a premium for certainty, its constituent stocks—characterized by stable cash flows, high dividends, and strong asset moats—continued to gain investor recognition. Within the banking sector, mature business models, optimized credit structures, stabilizing net interest margin declines, coupled with a supportive moderately loose monetary policy environment, have highlighted valuation resilience. Steady dividend returns make banks a key allocation target. Meanwhile, HALO assets, represented by sectors like energy, ports, and utilities, also displayed considerable resilience due to their high replacement costs, resistance to technological disruption, and stable profit expectations. Overall, the advantages of the index constituents in terms of business model clarity and profit predictability are attracting sustained inflows of incremental capital, reinforcing the allocation logic that emphasizes both dividends and defensiveness.
The banking sector performed notably well last week. Its mature operational models, stable cash flows, and sustained high dividend-paying capacity enhance its allocation value in a low-interest-rate environment. Fundamentally, banks are experiencing improved balance sheet expansion momentum, with credit primarily directed towards corporate government-related projects and manufacturing, leading to steady growth in asset scale. The year-on-year decline in net interest margins is gradually stabilizing, supported by improved deposit costs and reduced pressure for future LPR cuts, suggesting potential for further narrowing. Regarding asset quality, the non-performing loan ratio remains stable with a slight decline, and corporate loan quality continues to improve. On the policy front, the Q1 monetary policy committee meeting maintained a moderately accommodative stance, creating a stable monetary environment for steady credit growth and structural optimization in the banking sector. Current bank sector valuations reflect strong resilience, with reliable dividend returns and clear business models solidifying their role as a significant allocation direction.
HALO assets overall showed steady performance, demonstrating strong resilience amidst market volatility. Recent pressure on technology sector valuations, coupled with uncertainties surrounding high investments and returns in AI, has prompted the market to reassess, leading some capital to gradually shift from sectors driven by high-growth expectations towards those with clear business models and stable cash flows. In this context, heavy asset categories characterized by high replacement costs and resistance to technological substitution are gaining attention. Constituents of the Hang Seng Stock Connect China Central SOEs Dividend Index are primarily concentrated in sectors like energy, ports, and utilities, which feature high entry barriers, stable cost structures, and strong profit predictability. In a risk-averse market environment, their stable cash flow generation capabilities and defensive attributes are increasingly favored by incremental capital.
Hong Kong Stock Connect Central SOE dividend stocks offer higher dividend yields and lower valuations. The Hang Seng Stock Connect China Central SOEs Dividend Index boasts a dividend yield of 5.52% (compared to 4.64% for the CSI Dividend Index), with a P/B ratio of 0.66 and a P/E ratio of 7.65. Its total return index has accumulated a gain of 136% over the past five years, outperforming the Hang Seng Total Return Index by 132%. The CSI State-Owned Enterprises Dividend Index has a dividend yield of 4.56%, a P/B of 0.89, and a P/E of 9.06, with its total return index accumulating a 57% gain over five years, representing 60% excess return over the CSI 300 Total Return Index. (Data source: Wind, as of 2026/4/3)
Looking ahead, the domestic interest rate-cutting cycle's low-rate environment and the context of weak economic recovery are favorable for dividend strategies. Under the guidance of market value management initiatives, central and state-owned enterprises exhibit strong willingness and capability to pay dividends. The Hong Kong Stock Connect Central SOEs Dividend ETF Hua An (513920) and the State-Owned Enterprises Dividend ETF Hua An (561060) present relatively high allocation value.
Hong Kong Stock Connect Central SOEs Dividend ETF Hua An (513920) Product Introduction: The Hong Kong Stock Connect Central SOEs Dividend ETF (513920) is the first ETF in the market to combine exposure to Hong Kong stocks, central SOEs, and dividends. It is also the largest ETF tracking the Hang Seng Stock Connect China Central SOEs Dividend Index (HSSCSOY), which comprehensively includes high-quality, high-dividend central SOEs listed in Hong Kong. Related offshore products include: Hua An Hang Seng HK Connect China Central SOEs Dividend ETF Link A (020866) / Link C (020867).
State-Owned Enterprises Dividend ETF Hua An (561060) Product Introduction: The State-Owned Enterprises Dividend ETF (561060) tracks the CSI State-Owned Enterprises Dividend Index. This index selects 100 stocks from state-owned enterprises based on high cash dividend yield, stable dividend payments, and certain scale and liquidity, reflecting the overall performance of representative high-dividend state-owned enterprises in the A-share market. Related offshore products include: Hua An CSI State-Owned Enterprises Dividend ETF Link A (020461) / Link C (020462).
Risk Disclosure: The above is solely an objective description of the current constituent distribution of the target indices and does not constitute any investment advice or guarantee of investment returns. Index companies may subsequently adjust index compilation methodologies; the composition and weighting of index constituents may change dynamically. Please be aware of risks associated with potentially high concentration in certain index constituents with larger weights.
This fund is an equity fund, representing a higher-risk, higher-expected-return fund category, primarily investing in constituent stocks and alternative constituent stocks of the target index. Its feeder fund primarily aims to closely track the target index's performance by investing in the target ETF. This fund's expected returns and risks are higher than those of money market funds, bond funds, and hybrid funds, exhibiting risk-return characteristics similar to the target index. The fund management company does not guarantee that the fund will be profitable, nor does it guarantee a minimum return. Past performance of the fund is not indicative of its future results. The performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Fund product returns are subject to volatility risks. Investment involves risks; please invest cautiously. Details should be carefully reviewed in the fund's contract, prospectus, and other legal documents.
A MACD golden cross signal has formed, and certain stocks are performing well.
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