Shenwan Hongyuan Securities pointed out that the high-dividend sectors under the Stock Connect program currently exhibit significant sector rotation characteristics, with the consumer goods sector being undervalued and having potential for catch-up gains. Since the beginning of the year, industries such as entertainment products, jewelry, and cosmetics under the Stock Connect have shown notable growth. Additionally, the pharmaceutical sector is expected to rebound first in 2025, followed by a potential revaluation of consumer goods driven by policy catalysts. In terms of sector rotation sequence, after cyclical stocks rise, consumer goods have become the current focus, with future attention likely shifting to the "good housing" related industrial chain.

The Hong Kong Dividend ETF (159331) tracks the Hang Seng Stock Connect High Dividend Yield Index (930914), which selects securities of listed companies with stable high-dividend characteristics from the Stock Connect universe. It covers traditional high-dividend sectors such as finance, industry, and energy, aiming to reflect the overall performance of high-quality, high-dividend securities investable through the Stock Connect mechanism, emphasizing long-term value return characteristics.

Investors without stock accounts may consider Cathay CSI Hong Kong Stock Connect High Dividend Yield ETF Connect A (022274) and Cathay CSI Hong Kong Stock Connect High Dividend Yield ETF Connect C (022275).

Note: Any mentioned stocks are for reference only and do not constitute investment advice. Short-term performance and historical data of indices/funds are for analytical purposes only and do not indicate future performance. Market views may change with market conditions and do not constitute any investment advice or commitment. Indices mentioned are for reference only and do not constitute investment advice or guarantee future fund performance. When purchasing fund products, please choose products that match your risk tolerance. Funds carry risks; invest with caution.