Fund research: a triumphant horse's shoe disease, Hong Kong shares, central enterprises, the dividend wind revived
Hong Kong Stock Bonus Wind Rises Again
The fundamentals stabilized and the internal and external environment gradually improved. The US interest rate cut is expected to pick up, and the overseas liquidity environment is gradually improving. With the sharp depreciation of the yen, some funds are in need of global reallocation. The domestic economy is in a steady recovery trend in the short term. Recently, heavy real estate policies have been issued frequently, and Hong Kong stock earnings expectations have improved slightly, forming positive feedback to the Hong Kong stock market.
With the influx of funds, Hong Kong stocks may continue to rebound. Foreign capital has carried out "high and low switching" and returned to Hong Kong stocks "low-lying areas". The southward capital has maintained 14 consecutive weeks of positive net buying. The influx of domestic and foreign capital has driven the recent strong rebound of Hong Kong stocks. As of May 17, 2024, the risk premium of the HSI has stood at 71.37% since 2015. With the marginal improvement of the domestic economy, the HSI still has some trading space.
With the policy in force, Hong Kong stock dividends are expected to resonate. The new "National Ninth Article" puts forward the measures of warning and incentive for the supervision of cash dividends of listed companies. For companies that have not paid dividends for many years or have a low proportion of dividends, it restricts major shareholders to reduce their holdings and implement risk warnings. As the policy continues to be deeply implemented, the AH premium of some companies is expected to continue to converge.
Dividends are the king, and the investment value of Hong Kong shares is prominent. At present, the stock market rotates rapidly, and the industry theme is not obvious. Dividend assets of A-share and Hong Kong share have been significantly exceeded since 2023. The market embraces certainty, and dividend assets are expected to continue to outperform. Compared with A-share, Hong Kong stock dividend assets have a higher cost performance ratio in dividend yield and dividend premium. For stocks listed in both places, most Hong Kong stocks have an advantage over A-shares in terms of after tax dividend rate. Hong Kong stocks with high market value, good liquidity and high dividend yield are mainly concentrated in the financial industry, real estate construction industry and energy industry in the relevant sectors of "China Special Valuation".
Analysis of the investment value of the Hong Kong Stock Connect Central Enterprise Dividend and the Hong Kong Stock Connect Mainland Financial Index, To reflect the overall performance of securities of listed companies of central enterprises with high dividend yield within the scope of Hong Kong Stock Connect.
The China Securities Hong Kong Stock Connect Mainland Finance ("Hong Kong Stock Connect Mainland Finance") Index selects the securities of mainland holding financial theme listed companies within the scope of Hong Kong Stock Connect as the index sample to reflect the overall performance of the securities of mainland financial listed companies within the scope of Hong Kong Stock Connect. The dividend of Hong Kong Stock Connect to central enterprises and the constituent stocks of Hong Kong Stock Connect to mainland financial index have good liquidity. The dividend yield is higher than 6.40%, and the valuation is at a historical low level. Since this year, Hong Kong shares have gone out of the "V-shaped reversal". The total return of the Hong Kong Stock Connect Central Enterprise Bonus Index is 22.31%, and the total return of the Hong Kong Stock Connect Mainland Financial Index is 24.32%. The performance is good and significantly better than the Hang Seng Index.
Both the Huaxia China Securities Hong Kong Stock Connect Central Enterprise Bonus ETF and the Huaxia China Securities Hong Kong Stock Connect Mainland Financial ETF under Huaxia Fund invest in the Hong Kong stock market, with Hong Kong Stock Connect Central Enterprise Bonus and Hong Kong Stock Connect Mainland Financial Index as the target indexes respectively, focusing on dividend and financial sectors.
Hong Kong stock central enterprise dividend ETF (fund code: 513910) is equipped with two feeder funds at the same time, namely, Huaxia CSI Hong Kong Stock Connect Central Enterprise Dividend Link A (fund code: 021142) and Huaxia CSI Hong Kong Stock Connect Central Enterprise Dividend Link C (fund code: 021143).
The Hong Kong Stock Connect financial ETF (fund code: 513190) is equipped with two feeder funds at the same time, Huaxia China Securities Hong Kong Stock Connect Mainland Financial Link A (fund code: 020422) and Huaxia China Securities Hong Kong Stock Connect Mainland Financial Link C (fund code: 020423).
Risk warning: This report is based on historical data analysis. Market environment, policy changes and other factors may invalidate the analysis of this report. The evolution of overseas situation exceeded expectations; Tighter liquidity than expected; The policy promotion was not as expected.
