Logic for insurance capital allocation to high-dividend assets becomes prominent as Ping An of China CSI HK Dividend ETF (03070.HK) eyes fourth consecutive gain

NewTimeSpace News: As global market volatility intensifies amid geopolitical risks, currency fluctuations, and asset price adjustments, investor demand for stable yields continues to rise. As of 13:35 on January 29, Ping An of China Hong Kong High Dividend (03070.HK) gained 1.44%, poised to secure its fourth consecutive daily advance.

According to Hong Kong Exchanges and Clearing data, Ping An of China CSI HK Dividend ETF (03070.HK) tracks the CSI Hong Kong High Dividend Index, which employs a dual-factor screening methodology based on dividend yield and liquidity, with free-float market capitalization weighting and a single-stock cap of 10%. Constituents are rebalanced quarterly. As of September 2025, the top ten holdings accounted for approximately 60% of total weight, all representing core high-dividend assets in the Hong Kong market. The index covers three major sectors by market capitalization: financials, energy, and telecommunications, offering investors a stable income tool featuring semi-annual distributions and low expense ratios.

NewTimeSpace research reveals that since 2025, insurance capital has initiated comprehensive accumulation in the Hong Kong stock market. Beyond insurance sector equities, insurers have implemented intensive in H-shares of major state-owned banks including Agricultural Bank of China and Industrial and Commercial Bank of China. Notably, the shareholding ratio in Agricultural Bank of China H-shares has surpassed 20%. By constructing a sizable pool of high-dividend financial assets, insurers are fortifying their "moat" for navigating the prolonged low-interest-rate cycle.

CSC Financial notes that the attractiveness of high-dividend strategies must be evaluated alongside EPS growth rates. With EPS growth exceeding 5%, the implied total return becomes compelling. In a low-rate environment, high-dividend assets merit certain valuation premiums attributable to their stable business models.

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