On September 17, China's three major stock indices closed lower after a choppy session, with the Shanghai Composite Index slipping 0.41% and the ChiNext Index falling 0.40%. Against this backdrop, the Huatai-PB Dividend Low Volatility ETF (512890) declined 0.50% to CNY 1.184, recording a turnover rate of 1.63% and transaction volume of CNY 504 million, ranking first among its peer group.
In macro news, at 2:00 AM Beijing time on September 17, the U.S. Federal Reserve decided to raise its benchmark interest rate by 25 basis points to a target range of 3.75%-4.00%. This marks the first rate hike in three years and the first under newly appointed Fed Chair Warsh. According to Qiu Xiang, Chief A-share Strategist at CITIC Securities, the current conditions do not support a trend of consecutive rate hikes by the Fed. For the A-share market, various volume-price and sentiment indicators have already retreated to relatively subdued levels. If the Fed's potential September hike is viewed as a 'preventive tightening,' then the release of this rate hike risk should be seen as a buying opportunity rather than a selling signal. It could signal that the market correction since July is nearing its end, opening up room for positioning, rather than marking the start of a new downturn.
Yang Delong, Chief Economist and Fund Manager at First Seafront Fund, commented that for the domestic market, the Fed's rate hike will have a short-lived impact but no fundamental effect. It is highly likely that the People's Bank of China will not follow with a rate increase, instead maintaining a low-interest-rate and accommodative liquidity environment to support economic recovery. In the fourth quarter, the A-share market is expected to stage a valuation recovery rally. Maintaining an appropriate position with a strategy of 'one hand in tech, one hand in dividends' remains an effective investment approach: tech growth focuses on offense, while dividend-paying sectors provide defense.
Orient Securities noted that the Ministry of Finance's injection of CNY 70 billion into central insurance institutions will have limited short-term dilution of share capital. The move aims to strengthen the capital base, enhance risk resilience, and unlock room for asset allocation. As liability costs decline and underwriting profitability improves, the pricing logic for insurance stocks is shifting toward high dividends and stable payouts, potentially mirroring the valuation re-rating path seen in bank stocks.
As a steady tool for asset allocation in volatile markets, the Huatai-PB Dividend Low Volatility ETF (512890) was established on December 19, 2018, with the CSI Dividend Low Volatility Index as its benchmark, and is managed by fund manager Liu Jun. As of September 16, 2026, its five-year return stands at 38.10%, outperforming the performance benchmark and ranking 162nd out of 1,218 comparable products. Investors can use the Huatai-PB Dividend Low Volatility ETF (512890) as a core holding, with those without a stock account able to allocate through its off-exchange feeder funds (Class A: 007466; Class C: 007467; Class I: 022678; Class Y: 022951).
Risk disclosure: Funds carry risks, and investment should be made with caution. Past performance does not guarantee future results. Before making any investment decisions, investors should carefully read the fund contract, prospectus, and other relevant documents, and invest rationally according to their own risk tolerance.
Comments