Hong Kong Stock Connect Dividend ETF Sees Active Trading; Insurers Added 288.5B Yuan in Dividend Stocks in H1

As mid-to-late September unfolds, a wave of major central bank decisions has taken effect. The U.S. Federal Reserve, the Bank of Japan, and the European Central Bank have all raised interest rates in tandem, pushing global risk-free rates significantly higher. This has led to increased volatility in A-shares and Hong Kong stocks, with market risk aversion rising.

In this rate-hiking cycle, technology and growth stocks—highly sensitive to interest rates—are likely to experience greater volatility. In contrast, high-dividend assets, which have shorter cash flow durations and relatively higher dividend yields, are less sensitive to changes in discount rates. This makes them more resilient in a high-interest-rate environment and potentially more attractive to investors.

Hong Kong Stocks Offer Greater Value Relative to A-Shares

Meanwhile, following the recent correction in Hong Kong stocks, the valuation discount between Hong Kong and A-share markets has widened. According to Wind data, as of September 22, 2026, the Hang Seng China AH Premium Index closed at 124.54 points, placing it at the 81.61% percentile of its historical range over the past five years. This suggests that Hong Kong stocks offer significant value relative to their A-share counterparts.

Against this backdrop of favorable macroeconomic conditions and relative market valuations, the Huatai-PineBridge Hong Kong Stock Connect Dividend ETF (513530) —part of the Huatai-PineBridge "Dividend Family Bucket"—has become a key focus for capital. Driven by active subscription demand, trading volume has also increased. Wind data shows that the product's average daily turnover in September reached 264 million yuan, a notable increase from the average daily level of 197 million yuan recorded from the beginning of the year through the end of August.

Insurance Funds and Dividend Payouts Fuel Demand

In addition, large-scale purchases of dividend-yielding assets by insurance funds and a wave of密集 dividend distributions in Hong Kong have further boosted market enthusiasm.

Specifically, Huatai Securities noted that as of the end of June 2026, the secondary equity positions of listed insurance companies reached 19.4%. Among these:

• The allocation to dividend stocks (FVOCI) rose to 6.3%, an increase of 96 basis points from the beginning of the year.
• The allocation to growth stocks (FVTPL) fell to 6.9%, a decrease of 25 basis points.
• Fund allocations (classified under FVTPL) rose to 6.1%, an increase of 82 basis points.

This indicates that insurance companies made decisive purchases during the first-half dividend stock adjustments, adding a total of 288.5 billion yuan. As "patient capital," insurance funds are expected to continue providing stable inflows to dividend assets.

The wave of dividend distributions has also reinforced the fundamental appeal of Hong Kong dividend assets and supported the dividend yield of the underlying index. Company announcements show that since September, the constituent stocks of the Huatai-PineBridge Hong Kong Stock Connect Dividend ETF (513530) have distributed a total of 80.8 billion Hong Kong dollars in cash dividends, accounting for 38.8% of all Hong Kong stock dividends during the same period.

About Huatai-PineBridge's "Dividend Family Bucket"

The Huatai-PineBridge Hong Kong Stock Connect Dividend ETF (513530) is managed by Huatai-PineBridge Fund Management, one of China's first ETF managers. The company has accumulated nearly 20 years of experience in dividend-themed index investing, offering a diversified "Dividend Family Bucket" covering both A-shares and Hong Kong stocks.

Key products in the family include:

• Dividend ETF (510880): The first A-share dividend-themed index fund, with 422,900 holders as of mid-2026.
• Dividend Low Volatility ETF (512890): Its feeder fund has 1.4838 million holders.
• Central SOE Dividend ETF (561580): The first A-share ETF combining "central SOEs + dividends."
• Hong Kong Stock Connect Dividend ETF (513530) and Hong Kong Stock Connect Dividend Low Volatility ETF (520890): Focus on Hong Kong high-dividend assets. The former uses a QDII structure, offering advantages in Hong Kong dividend tax; the latter incorporates a low-volatility factor for greater defensive characteristics in the volatile Hong Kong market.
• Dividend Quality ETF (561630): Uses a "dividend + quality" dual-factor stock selection strategy, targeting high-dividend stocks with solid fundamentals and strong profitability.
• Dividend Low Volatility 50 ETF (561450): Combines "dividend + low volatility" factors with a focus on high-quality blue-chip stocks.

(Holder data source: Fund periodic reports, as of June 30, 2026. Establishment dates: Dividend ETF 510880: 2006/11/17; Dividend Low Volatility ETF 512890: 2018/12/19; Central SOE Dividend ETF 561580: 2023/5/18)

Note: The "Dividend Family Bucket" refers to the above seven Huatai-PineBridge dividend ETFs. All products carry a risk rating of R3. Risk ratings may vary by sales institution based on applicable investor suitability regulations.

Fee Note: For subscriptions/redemptions of Dividend Low Volatility 50 ETF (561450) and Dividend Quality ETF (561630), agents may charge up to 0.30% (subscription) and up to 0.50% (redemption, including exchange and clearing fees). For other products, agents may charge up to 0.50% (including exchange and clearing fees). Secondary market trading commissions are set by the broker; stamp duty is exempt.

Risk Disclaimer: Investment in funds involves risks. Please read the fund contract, prospectus, and product summary carefully. Past performance is not indicative of future results. The Hong Kong Stock Connect ETFs are subject to additional risks, including exchange rate and overseas market risks. Index ownership and disclaimers apply as per respective index providers (Hang Seng Indexes, S&P Dow Jones Indices, and CSI Index).