China Merchants Securities noted that the recent Politburo meeting emphasized "expanding domestic demand and implementing industrial policies simultaneously," focusing on stimulating effective demand through consumption and investment to help the economy exit the deflationary cycle. The policy shift from supply-side optimization to improving supply-demand dynamics will enhance industry competition, creating positive feedback for employment, wages, and prices. Fiscal policy prioritizes efficient implementation of existing measures, while monetary policy aims to lower financing costs, preventing idle capital and channeling liquidity into the real economy. The capital market’s role is clarified—enhancing attractiveness and inclusivity to consolidate recovery momentum, which may lift asset prices and amplify the wealth effect, thereby boosting domestic demand. These policy directions support high-dividend Hong Kong stocks, as improving economic fundamentals and rising risk appetite may foster a favorable market environment. Currently, Hong Kong stocks remain undervalued, with select high-dividend stocks gaining appeal amid declining interest rates.

Dividend-focused Hong Kong Stock ETF (159331) tracks the Hang Stock Connect High Dividend Yield Index (930914), which selects Hong Kong-listed securities with stable high dividend payouts under the Stock Connect program. The index primarily covers traditional high-dividend sectors like finance and real estate, reflecting the overall performance of high-yield Hong Kong stocks.

Investors without stock accounts may consider:

• Guotai CSI HK Stock Connect High Dividend ETF Connect C (022275)

• Guotai CSI HK Stock Connect High Dividend ETF Connect A (022274)

Note: Mentioned stocks are for reference only and not investment advice. Short-term index/fund performance and historical data are for analysis and do not indicate future results. Market views may change with conditions and do not constitute recommendations or guarantees. Indices cited are for reference and do not predict fund performance. Investors should choose products matching their risk tolerance. Funds carry risks; invest cautiously.