US PMI Hits 5-Year High, Fueling October Rate Hike Bets; Southbound Funds Buy HK Dividend Stocks for 13 Straight Days

September 23, 2026 — Data released by S&P Global on September 23, 2026, showed that the U.S. Composite PMI Output Flash Estimate rose to 58.4 this month, significantly up from 56.0 in August, marking the highest level since July 2021. The reading has sparked market concerns that the economy may be shifting from "resilience" to "overheating," triggering a massive sell-off in the Treasury market. The yield on the 10-year U.S. Treasury note surged more than 16 basis points, breaching the 5.1% threshold.

Meanwhile, escalating U.S.-Iran tensions pushed oil prices back into elevated territory. Under the dual pressure of rising oil prices and strong economic data, market bets on a Federal Reserve rate hike in October have intensified sharply.

Source: "Probability of Fed Rate Hike in October Rises to 69.7%" — September 24, 2026

Dividend Assets Gain Appeal Amid Global Rate Hikes and Uncertainty

Against the backdrop of rising global interest rates and heightened macroeconomic uncertainty, the resilience of dividend-yielding assets has become increasingly prominent, making them a core allocation target for many market participants.

• Hedging demand rises: With heightened volatility in capital markets, investors' demand for hedging continues to increase. Dividend assets, supported by relatively stable cash flows, may help offset some market volatility risks.
• Rate sensitivity advantage: In a rising-rate environment, technology and growth stocks—highly sensitive to interest rate fluctuations—have seen significantly amplified volatility. In contrast, high-dividend assets, characterized by relatively short cash flow duration and stable, elevated dividend yields, are less sensitive to changes in discount rates. This positions them to demonstrate stronger resilience in a high-interest-rate environment.

Source: "Unexpectedly Strong PMI Rekindles Rate Hike Expectations, U.S. Treasuries Routed; Nasdaq Ends Four-Day Winning Streak, Dollar Rises, Gold Falls" — September 24, 2026

Huatai-PineBridge Hong Kong Stock Connect Dividend ETF (513530) Attracts Attention

Under this market logic, the Huatai-PineBridge Hong Kong Stock Connect Dividend ETF (513530) — a core product in the firm's "Dividend Family Bucket" — has drawn market attention for its allocation value.

According to Wind data as of September 23, 2026:

• The underlying index, the CSI Hong Kong Stock Connect High Dividend Yield Index, posted a latest dividend yield of 5.01%.
• This represents a premium of 3.39 percentage points over the 10-year Chinese government bond yield of 1.68%, highlighting a significant dividend advantage.
• Constituent stocks of the underlying index have distributed a cumulative cash dividend of HKD 80.8 billion since the beginning of September, accounting for 38.8% of total dividends paid across the Hong Kong stock market during the same period. This further underscores the index's dividend-oriented characteristics.

Data sources: Wind, listed company announcements, as of September 23, 2026. Note: Investment in government bonds and equities carry different risk-return profiles. Investors should fully consider risks when making investment decisions.

Southbound Capital Flows into Hong Kong Dividend Stocks for 13 Consecutive Days

In terms of capital flows, southbound funds have recorded net buying for 13 consecutive trading days (September 7–23, 2026), indicating a notable trend of market capital allocating to Hong Kong dividend-yielding assets.

Over the past month, southbound capital flow data by Hang Seng secondary industry shows:

| Industry | Net Southbound Inflow (CNY) | |---|---| | Insurance | 6.381 billion | | Real Estate | 2.576 billion | | Oil & Gas | 2.380 billion |

These traditional high-dividend core sectors have seen particularly strong net inflows, confirming southbound capital's preference for Hong Kong dividend assets.

Data source: Wind, as of September 23, 2026

Index Profile: CSI Hong Kong Stock Connect High Dividend Yield Index

The Huatai-PineBridge Hong Kong Stock Connect Dividend ETF (513530) closely tracks the CSI Hong Kong Stock Connect High Dividend Yield Index. The index selects 30 constituent stocks from companies eligible for the Hong Kong Stock Connect program, based on criteria including good liquidity, consistent dividend payments, and high dividend yields. The index is weighted by dividend yield, aiming to reflect the overall performance of listed companies in the Hong Kong Stock Connect universe that pay dividends consistently and offer high yields.

Top five Shenwan primary industries (as of September 23, 2026):

• Banking: 30.1%
• Transportation: 16.3%
• Oil & Petrochemicals: 11.0%
• Coal: 8.2%
• Non-bank Financials: 6.4%

The index covers multiple high-dividend sectors and may serve as a key tool for investors seeking exposure to Hong Kong dividend assets.

Sources: Wind, CSI Index Company, as of September 23, 2026. Constituent industry weights are subject to change with index adjustments and price movements.

Huatai-PineBridge's "Dividend Family Bucket" Product Lineup

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

Key products include:

| Product | Ticker | Highlights | |---|---|---| | Dividend ETF Huatai-PineBridge | 510880 | First A-share dividend-themed index fund; 422,900 holders as of mid-2026 | | Dividend Low Volatility ETF Huatai-PineBridge | 512890 | 1,483,800 holders (including feeder fund) | | Central SOE Dividend ETF Huatai-PineBridge | 561580 | First A-share "Central SOE + Dividend" dual-theme ETF | | Hong Kong Stock Connect Dividend ETF Huatai-PineBridge | 513530 | Focuses on HK high-dividend assets; QDII structure offers dividend tax advantages | | Hong Kong Stock Connect Dividend Low Volatility ETF Huatai-PineBridge | 520890 | Adds low-volatility factor for enhanced defense in volatile HK market | | Dividend Quality ETF Huatai-PineBridge | 561630 | "Dividend + Quality" dual-factor strategy; targets fundamentally sound, high-dividend stocks with stronger growth characteristics | | Dividend Low Volatility 50 ETF Huatai-PineBridge | 561450 | "Dividend + Low Volatility" dual-factor; focuses on high-quality blue chips |

Holder data source: Fund periodic reports, as of June 30, 2026. Establishment dates: 510880 (Nov 17, 2006), 512890 (Dec 19, 2018), 561580 (May 18, 2023).

Note: The "Dividend Family Bucket" refers to the above seven products. All are rated R3 in terms of risk level. Risk ratings may vary by sales institution based on applicable investor suitability regulations.

Fee Information

• Dividend Low Volatility 50 ETF (561450) and Dividend Quality ETF (561630): Subscription commission ≤ 0.30%; redemption commission ≤ 0.50% (including fees charged by stock exchanges and clearing institutions).
• Other products: Subscription and redemption commission ≤ 0.50% (including fees charged by stock exchanges and clearing institutions).
• Secondary market trading: Commission determined by the brokerage firm; stamp duty exempted.

Source: Product legal documents, as of September 23, 2026.

Risk Disclaimer

Funds involve risks. Investment should be made with caution. Before purchasing any fund product, please review relevant investor suitability regulations, complete a risk assessment in advance, and select a fund product that matches your risk tolerance based on your own circumstances.

Past performance does not guarantee future results. The performance of other funds managed by the same fund manager does not constitute a guarantee of the fund's performance. Investors should carefully read the fund contract, prospectus, product summary, and other legal documents to understand the fund's specifics.

Special risk note for Hong Kong Stock Connect ETFs (513530, 520890): These funds invest in overseas securities markets. In addition to general investment risks similar to those of domestic securities investment funds (e.g., market volatility), investors will also face special risks including exchange rate risk and overseas securities market risk.

Index disclaimer:

• The Hang Seng Hong Kong Stock Connect Dividend Low Volatility Index is compiled and published by Hang Seng Indexes Company, which owns all rights to the index. Hang Seng Indexes Company will take all necessary measures to ensure the accuracy of the index but makes no warranty and accepts no liability for any errors.
• The S&P China A-Share Large Cap Dividend Low Volatility 50 Index is compiled and calculated by S&P Dow Jones Indices LLC ("S&P"), which owns all rights to the index. S&P will take all necessary measures to ensure the accuracy of the index but makes no warranty and accepts no liability for any errors.
• Other indices are compiled and published by CSI Index Company, which owns all rights. CSI will take all necessary measures to ensure the accuracy of the indices but makes no warranty and accepts no liability for any errors.