Early trading on May 21olympusmegawayspragmatic, Hong Kong stocks continued to fall after opening lower. The Hang Seng Index fell more than 2%, and the Hang Seng Technology Index fell more than 3%. The major financial sectors fell against each other, with the Hong Kong Stock Connect Financial ETF (513190) now falling nearly 1%. Data shows that the ETF has received net inflows of funds for three consecutive days, totaling more than 1olympusmegawayspragmatic.100 million yuan, the scale is growing rapidly, and the market popularity remains high.

At the market level, since 2021, dividend assets have continued to outperform the market for more than three years. The market generally believes that this round of dividend asset market is similar to the core asset market in previous years, or there are doubts that the market will end.

Huafu Securities believes that dividend assets and core assets in previous years have both differences and commonalities in market logic. From the perspective of "certainty", the conditions for the end of the dividend asset market may be similar to those for core assets, that is, the profit growth rate of listed companies will pick up. As a nominal variable that includes price factors, corporate profits have a significant positive correlation with the year-on-year growth trend of PPI. Data released on May 11 showed that the year-on-year growth rate of PPI in April 2024 was-2.5%, still in the negative growth range. Therefore, the excess returns on dividend assets may be expected to continue.

Public information shows that the Hong Kong Stock Connect Financial ETF (513190) is located in a large financial sector dominated by banks in Hong Kong stocks, and has lower valuation and higher dividend advantages compared with A-shares. Currently, the price-to-book ratio of its underlying index is 0.44, which is lower than the period of more than 84% in the past 10 years; the dividend yield is 6.42%, which is significantly higher than the mainstream dividend index.