The spotlight is heating up right next to you in China’s asset market!
A-shares are on fire: The Shanghai Composite Index has hit a 10-year high — breaking above 3,800 points, its highest closing level since 2015, sparking strong market excitement.
A-share market cap hits a milestone: On the same day, the total market cap of A-shares surpassed the 100 trillion RMB mark for the first time ever. Behind this record are surging margin financing balances and booming investor participation.
Money is pouring in: Trading volume soared to about 2.8 trillion RMB, with both institutions and retail investors driving liquidity.
These signals tell us one thing: investment sentiment is strong, capital is favoring equities, and the appeal of high-dividend ETFs is climbing fast. So let’s break it down in plain English — why high-dividend stock ETFs deserve your attention.
What’s a High-Dividend ETF?
Think of it like keeping a little “rent collection notebook.”
Instead of apartments, it’s filled with companies that pay dividends.
An ETF is a basket that bundles these companies together. Buy one share of the basket, and you get to share in their dividend payouts.
High-Dividend ETFs: Focus on companies with higher dividend yields — the goal is “more payouts, more cash.”
Dividend ETFs: Focus on companies with steady, sustainable dividends. Yields may be lower, but they’re more stable.
In one sentence: 👉 Want higher payouts? Look at High-Dividend ETFs. 👉 Want steady, long-term income? Stick with Dividend ETFs.
Which Sectors Usually Pay High Dividends?
High-dividend stocks don’t come out of nowhere. They’re usually clustered in certain industries:
Banks & Insurance (Financials): Cash-rich, steady profits, generous dividends.
Real Estate: Rental and land sales generate stable cash flows, especially among Hong Kong developers.
Infrastructure (roads, bridges, energy): Large projects, solid cash flows, and often dividend-friendly.
Think of these companies as “old landlords” — reliably paying out rent every year.
When’s the Best Time to Buy?
During rate cuts: Bank deposit rates go down, making high-dividend stocks more attractive.
During rate hikes: Higher bank interest rates may draw money back to deposits, reducing ETF appeal.
👉 Quick takeaway:
Rate down: Load up on high-dividend ETFs.
Rate up: Scale back and manage risk.
Big picture (macro view):
Slowing economy + falling rates → High-dividend ETFs shine.
Recovering economy + rising rates → Less attractive, but still good for diversification.
In other words: it’s not a “buy and forget” product. You need to keep an eye on the market.
How to Manage Risks?
High yield ≠ guaranteed profit. A few simple rules:
Diversify: Don’t put all your money into a single ETF. Spread it out.
Set stop-losses: For example, cut back if it drops 10% — don’t cling to it.
Watch dividends: If payouts suddenly shrink, reassess the ETF.
Review regularly: Check in every 6 months — don’t buy and disappear.
Popular High-Dividend ETFs in the Market
$GX HS HIGH DIV(03110)$ $FB SSH HIGH DIV(03190)$ $HS HIGH DIV(03466)$
Invest in China with Tiger—your one-stop solution
Bullish on China but not sure how to allocate? With one Tiger account, you can invest in a range of China-related assets:
A-shares Connect: $HUATAI-PINEBRIDGE CSI 300 INDEX TRADING SECURITIES INVESTMENT FUND(510300)$ ; $CARD IN 500 EXCHANGE-TRADED INDEX SECURITIES INVESTMENT FUND(510500)$ ; $E-FUND GEM TYPE OPEN INDEX TRADING SECURITIES INVESTMENT FUND(159915)$ $Contemporary Amperex Technology Co.,Ltd.(300750)$ ; $Kweichow Moutai Co.,Ltd.(600519)$
Hong Kong Market: $Xinjiang Tianshun Supply Chain Co.,Ltd.(002800)$ $HSCEI ETF(02828)$ $CAM MSCI A50(02839)$ ; $TENCENT(00700)$ , $MEITUAN-W(03690)$ , $CHINA MOBILE(00941)$
US Markets: $Xtrackers Harvest CSI 300 China A-Shares ETF(ASHR)$ , $KraneShares CSI China Internet ETF(KWEB)$ , $iShares China Large-Cap ETF(FXI)$ , $Alibaba(BABA)$ , $BIDU-SW(09888)$ $PDD Holdings Inc(PDD)$
In addition, Tiger Trade’s signature features—TigerAI and Recurring Investment—make it easier to build exposure to Chinese assets:
TigerAI Investment Assistant: New to Chinese assets? Ask anytime—e.g., “Which ETFs track the CSI 300?” or “Which China ADRs are trending lately?”—and get answers instantly.
Recurring Investments for HK stocks & ETFs: Worried about timing? Tiger Trade supports daily/weekly/monthly recurring plans for Hong Kong stocks and ETFs to average your cost, build long-term positions, and pursue steadier outcomes.
Disclaimer: This article provides market insights and investment ideas, not financial advice. Investing carries risks—please invest prudently.
Comments