Market News:Escalating geopolitical tensions in Iran have driven crude oil prices higher, triggering a broad-based rally across the energy sector, with related individual stocks surging to their daily upper limits. Hong Kong's high-dividend assets are once again attracting significant capital inflows. In afternoon trading, the Bosera China Reform Hong Kong Central-SOEs High Dividend Yield Index ETF(03437.HK)jumped over 2% in the past 60 trading days, ranking among the top performers in its category.

According to Hong Kong Exchange (HKEX) data, Bosera China Reform Hong Kong Central-SOEs High Dividend Yield Index ETF (03437.HK) tracks theCSI State-owned Enterprises (SOE) Dividend Index (H-Share Connect). This index, customized by China Reform Holdings Corporation and compiled by China Securities Index Co., Ltd., was launched on September 13, 2023. It is the first dual-themed index in the Stock Connect universe focusing on both "Central SOEs" and "Dividends," and the first cross-border index supporting tri-currency denomination in HKD, CNY, and USD.

Since its inception, the index has delivered cumulative returns that outperformed the Hang Seng Index by over 20 percentage points, while exhibiting smaller drawdowns during bear market years, serving as a typical "dividend downside buffer." The top three sector weightings are:Petroleum & Petrochemicals (33.9%), Telecommunications (21.7%), and Coal (14.3%), collectively accounting for over 70% of the index. Additionally, the index covers other critical sectors of the national economy including Utilities, Construction & Decoration, Transportation, and Pharmaceuticals & Biotechnology.

GF Securities notes that if unexpected liquidity tightening events occur going forward, investors may consider allocation opportunities in Hong Kong's high-dividend sector. Mid-March to mid-April is typically the peak season for annual report releases by major Hong Kong-listed companies, where dividend proposals are announced simultaneously. Any dividend surprises could potentially drive the high-dividend sector higher. Furthermore, some investors may purchase shares before the record date to qualify for dividend distributions, creating a "dividend capture rally." (Source: GF Securities, December 2, 2025, "How to View the Year-End Hong Kong High-Dividend Market? — Hong Kong Stock Market Strategy Outlook")

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