Market Review and Key Views: On the Hong Kong stock side, last week the Hang Seng Stock Connect China Central SOE Dividend Index rose 4.09%, the Hang Seng Index rose 0.87%, and the Hang Seng TECH Index fell 3.02%. On the A-share side, last week the CSI State-owned Enterprise Dividend Index rose 3.34%, while the CSI 300 fell 2.88%. (Data source: Wind, as of 2026/10/30, all figures are returns of the corresponding total return indices.)
Last week the Hong Kong stock market rebounded amid volatility, with the Hang Seng Index gaining about 0.9% for the week, and market risk appetite recovered somewhat, though structural divergence across sectors remained pronounced. Stock Connect central SOE dividend assets performed relatively strongly, showing notable short-term return elasticity. In terms of sector performance, heavyweight directions such as banking, transportation, and utilities posted the largest gains, becoming the main forces driving the index higher. As the market gradually recovered from its earlier correction, capital attention to low-valuation, high-dividend, and earnings-certainty assets increased, further highlighting the allocation appeal of central SOE dividend assets.
From a sector fundamentals perspective, the banking sector has been relatively strong recently, with state-owned major banks posting steady profit growth in their third-quarter reports, further reinforcing market confidence in the certainty of bank earnings. In the first three quarters, the net profit attributable to shareholders of Industrial and Commercial Bank of China, Agricultural Bank of China, and Bank of China grew 5.83%, 7.10%, and 5.53% year-on-year, respectively, maintaining steady operating performance. At the same time, as net interest margins gradually stabilized and asset quality remained stable, market expectations for the banking sector's earnings outlook improved. Combined with the continued stable dividend capacity of state-owned major banks, the dividend yield and valuation recovery potential of the banking sector have drawn market attention, providing important support for Stock Connect central SOE dividend assets.
In transportation, the supply-demand landscape of the shipping market improved marginally, and together with corporate earnings releases, this drove a recovery in sector prosperity expectations. Recently, international shipping routes have continued to be disrupted by geopolitical tensions, with some vessels taking detours and port congestion placing certain constraints on effective global capacity, keeping freight rates on some routes resilient. In terms of corporate operations, COSCO SHIPPING Holdings' third-quarter net profit attributable to shareholders grew 80.73% year-on-year and 128.45% quarter-on-quarter, with profitability improving markedly. At the same time, port and logistics central SOEs, with strong cash flow generation capacity and stable dividend levels, also offer relatively good allocation appeal. Overall, the improvement in shipping prosperity and high-dividend characteristics have formed a resonance, which is expected to further enhance the return elasticity of the transportation sector.
In utilities, electricity demand has maintained steady growth, while energy supply security and the construction of a new-type power system continue to provide medium- to long-term support. Data from the National Energy Administration show that in the first three quarters, total society-wide electricity consumption grew 3.9% year-on-year, with electricity demand generally remaining resilient. As the winter peak approaches, the importance of power security and system regulation has further increased, and combined with the gradual improvement of the coal-fired power capacity price mechanism, this helps enhance the stability of related companies' revenue. Meanwhile, investment in areas such as power grids and new-type energy storage continues to grow, providing long-term development space for the power industry. For Stock Connect central SOE dividend assets, the stable operating cash flow and sustained dividend capacity of the utilities sector are expected to continue providing strong fundamental support for the portfolio.
Based on recent market performance, the allocation value of Stock Connect central SOE dividend assets is reflected not only in their high-dividend and low-valuation characteristics, but also in the high degree of alignment between their sector structure and the current market style. On the one hand, sectors such as banking and utilities operate relatively steadily and can support the portfolio through stable cash flow and dividends. On the other hand, sectors such as transportation benefit from improved industry prosperity, which also brings certain upside elasticity to dividend assets. Looking ahead, as the Hong Kong stock market gradually stabilizes and sector rotation continues to play out, Stock Connect central SOE dividend assets, which combine earnings certainty, stable dividend returns, and some cyclical prosperity elasticity, are expected to continue demonstrating a balanced offense-and-defense allocation advantage, providing the portfolio with relatively steady dividend income and certain capital appreciation potential. Stock Connect central SOE dividend assets have a higher dividend yield and lower valuation. The Hang Seng Stock Connect China Central SOE Dividend Index has a dividend yield of 5.33% (versus 4.49% for the CSI Dividend Index), a PB of 0.60, and a PE of 7.25. Its total return index has accumulated a gain of 114% over the past five years, with excess return of 104% relative to the Hang Seng Total Return Index. The CSI State-owned Enterprise Dividend Index has a dividend yield of 4.46%, a PB of 0.96, and a PE of 9.80. Its total return index has accumulated a gain of 57% over the past five years, with excess return of 65% relative to the CSI 300 Total Return Index. (Data source: Wind, as of 2026/10/30.)
Looking ahead, the low interest rate environment under the domestic rate-cutting cycle and the backdrop of a weak economic recovery are both favorable to dividend strategies. Under the baton of market value management, central SOEs and state-owned enterprises have relatively strong willingness and capacity to pay dividends, and Hua'an Hang Seng Stock Connect China Central SOE Dividend ETF (513920) and Hua'an State-owned Enterprise Dividend ETF (561060) have relatively high allocation value.
Hua'an Hang Seng Stock Connect China Central SOE Dividend ETF (513920) Product Overview
Hua'an Hang Seng Stock Connect China Central SOE Dividend ETF (513920) is the first ETF in the entire market to combine the three attributes of Hong Kong stocks, central SOEs, and dividends, and is also the largest ETF tracking the Hang Seng Stock Connect China Central SOE Dividend Index (HSSCSOY). The index captures high-quality, high-dividend central SOEs listed in Hong Kong in one basket. Related off-exchange products include: Hua'an Hang Seng Stock Connect China Central SOE Dividend ETF Feeder A (020866) / Feeder C (020867).
Hua'an State-owned Enterprise Dividend ETF (561060) Product Overview
Hua'an State-owned Enterprise Dividend ETF (561060) tracks the CSI State-owned Enterprise Dividend Index, which selects 100 stocks from state-owned enterprises with high cash dividend yields, relatively stable dividends, and a certain scale and liquidity, reflecting the overall performance of representative high-dividend state-owned enterprises in the A-share market. Related off-exchange products include: Hua'an CSI State-owned Enterprise Dividend ETF Feeder A (020461) / Feeder C (020462).
Fee Description: Hua'an Hang Seng Stock Connect China Central SOE Dividend ETF Feeder A (020866): for a single subscription amount M < 500,000, the subscription fee rate is 0.60%; for a single subscription amount of 500,000 ≤ M < 1,000,000, the subscription fee rate is 0.30%; for a single subscription amount M ≥ 1,000,000, the subscription fee is 1,000 yuan per transaction. For redemption, if the holding period Y < 7 days, the redemption fee rate is 1.50%; if the holding period Y ≥ 7 days, the redemption fee rate is 0.00%. Management fee rate 0.50%; custody fee rate 0.10%. Hua'an Hang Seng Stock Connect China Central SOE Dividend ETF Feeder C (020867): subscription fee rate 0.00%. For redemption, if the holding period Y < 7 days, the redemption fee rate is 1.50%; if the holding period Y ≥ 7 days, the redemption fee rate is 0.00%. Management fee rate 0.50%; custody fee rate 0.10%; sales service fee 0.25%. Hua'an CSI State-owned Enterprise Dividend ETF Feeder A (020461): for a single subscription amount M < 1,000,000, the subscription fee rate is 0.60%; for a single subscription amount of 1,000,000 ≤ M < 5,000,000, the subscription fee rate is 0.30%; for a single subscription amount M ≥ 5,000,000, the subscription fee is 1,000 yuan per transaction. For redemption, if the holding period Y < 7 days, the redemption fee rate is 1.50%; if the holding period Y ≥ 7 days, the redemption fee rate is 0.00%. Management fee rate 0.50%; custody fee rate 0.10%. Hua'an CSI State-owned Enterprise Dividend ETF Feeder C (020462): subscription fee rate 0.00%. For redemption, if the holding period Y < 7 days, the redemption fee rate is 1.50%; if the holding period Y ≥ 7 days, the redemption fee rate is 0.00%. Management fee rate 0.50%; custody fee rate 0.10%; sales service fee 0.25%. Regarding ETF subscription/redemption fee rates, when investors handle cash subscriptions or redemptions, the sales institution may charge a certain fee/commission at a standard not exceeding 0.5%, which includes related fees charged by exchanges, registration and settlement institutions, and others.
Risk Disclosure: The above is only an objective introduction to the current constituent stock distribution of the underlying index, does not constitute any investment advice, and is not a guarantee of investment returns. The index company may subsequently adjust the index compilation scheme, and the composition and weights of the index constituents may change dynamically. Please pay attention to the risk of relatively large weights and high concentration of some index constituents. This fund is an equity fund and belongs to a fund category with relatively high risk and relatively high expected return. It mainly invests in constituent stocks and alternative constituent stocks of the underlying index, and its feeder fund mainly tracks the performance of the target ETF closely through investment in the target ETF. The expected return and risk of this fund are higher than those of money market funds, bond funds, and mixed funds, and it has risk-return characteristics similar to those of the underlying index. The fund management company does not guarantee that this fund will necessarily be profitable, nor does it guarantee a minimum return. The past performance of a fund does not predict its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund product returns are subject to volatility risk. Investment requires caution. For details, please carefully read the fund contract, prospectus, and other fund legal documents of this fund. A MACD golden cross signal has formed, and these stocks are rising well!
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