Three products achieved a total transaction volume of over 600 million yuan throughout the day, with turnover rates all exceeding 17%. On July 10th, the first batch of four Guoxin Hong Kong Stock Connect Central Enterprise Dividend ETFs were listed in both Shanghai and Hong Kong, with the three products listed on the Shanghai Stock Exchange receiving particular attention.

Post-market data shows that among the four products, the three ETFs listed on the Shanghai Stock Exchange had a single-day turnover rate of over 17%, with a combined transaction volume exceeding 600 million yuan (RMB, same below); the transaction volume of the Bosera China Securities Guoxin Hong Kong Stock Connect Central Enterprise Dividend ETF listed on the Hong Kong Stock Exchange exceeded 2.1 million yuan. Against the backdrop of a 2.79% decline in the benchmark index, all four products also experienced varying degrees of decline on the day, with the drop ranging from 0.93% to 2.7%.

The aforementioned three ETF products listed on the Shanghai Stock Exchange raised a total of 3.4 billion yuan, with Guoxin Investment investing approximately 700 million yuan to hold, and being the largest holder in all cases. In addition, there were also funds from various institutions such as securities firms, insurance capital, and private equity.

Furthermore, it was revealed by industry insiders that as the first central enterprise-themed product in Hong Kong, the Bosera Guoxin Hong Kong Stock Connect Central Enterprise Dividend Index ETF raised approximately 120 million Hong Kong dollars.

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Guoxin Investment subscribed to 700 million yuan.

As of the close on July 10th, the Guoxin Hong Kong Stock Connect Central Enterprise Dividend Index fell by 2.79% in a single day. Among the ETFs linked to it, the GF China Securities Guoxin Hong Kong Stock Connect Central Enterprise Dividend ETF fell by 0.93%, while the Southern China Securities Guoxin Hong Kong Stock Connect Central Enterprise Dividend and JingShun Great Wall China Securities Guoxin Hong Kong Stock Connect Central Enterprise Dividend ETFs fell by 1.95% and 1.75%, respectively. The transaction volume of all three products was around 200 million yuan, with an average turnover rate exceeding 18%.

The single-day decline of the Bosera China Securities Guoxin Hong Kong Stock Connect Central Enterprise Dividend ETF was 2.7%. Among them, the Hong Kong dollar trading share of the product was approximately 1.4237 million yuan, the US dollar trading share was 55,400 yuan, and the RMB trading share was 405,100 yuan. Converted at the exchange rate of the day, the total transaction volume was approximately 2.1343 million yuan.

From the initial subscription to the listing on July 10th, the first batch of China Securities Guoxin Hong Kong Stock Connect Central Enterprise Dividend ETFs took about a month. During this period, Guoxin Investment, known as the "new national team," subscribed to the initial shares of three dividend ETFs from Nanfang Fund, GF Fund, and JingShun Great Wall Fund.

Data shows that the issuance scale of the GF China Securities Guoxin Hong Kong Stock Connect Central Enterprise Dividend ETF was 1.165 billion yuan, with Guoxin Investment holding 250 million shares, accounting for 21.47% of the total fund shares; the issuance scale of the China Securities Guoxin Hong Kong Stock Connect Central Enterprise Dividend ETF under Nanfang Fund and JingShun Great Wall Fund was 1.125 billion yuan and 1.11 billion yuan, respectively, with Guoxin Investment holding 225 million shares in both, accounting for 20.26% and 19.99%, respectively. Simply calculated, Guoxin Investment invested about 700 million yuan to purchase the aforementioned three ETFs.

The number of valid subscribers for these three products all exceeded 4,000. In addition to Guoxin Investment holding, there were also multiple institutions involved. For example, the proportion of institutional investors in the China Securities Guoxin Hong Kong Stock Connect Central Enterprise Dividend ETF of GF Fund and Nanfang Fund has exceeded half, and the top ten holders also include institutions such as China Merchants Securities, Huatai Securities, CITIC Securities, Taikang Life, and Shanghai Chuorui Private Equity, among others.

The JingShun Great Wall China Securities Guoxin Hong Kong Stock Connect Central Enterprise Dividend ETF is mainly dominated by individual investors, accounting for 56.17% of the total fund shares. However, the top ten holders also include the presence of securities firms, private equity, and FOF products such as Shanghai Securities, Great Wall Securities, and CITIC Securities.Currently, the aforementioned three ETF products have been successively established. Data shows that as of July 3rd, the construction speed of the Jing Shun Great Wall CSI Guonew Hong Kong Stock Connect Central Enterprises Dividend ETF was relatively fast, with equity assets purchased amounting to 6.79 billion yuan, accounting for 43.06% of the fund's total assets; the Southern CSI Guonew Hong Kong Stock Connect Central Enterprises Dividend ETF and the GF CSI Guonew Hong Kong Stock Connect Central Enterprises Dividend ETF respectively purchased equity assets of 5.84 billion yuan and 4.76 billion yuan, with a proportion of 40.83% and 33.27%.

At the same time, the Hong Kong stock market has also welcomed its first investment product focused on the central enterprise theme. A person related to Bosera International told First Financial that they hope to promote the collaborative linkage between domestic and foreign capital markets through this product, providing Hong Kong investors with an efficient tool for allocating high-quality Hong Kong stock central enterprise listed companies. At the same time, they also hope to attract more diverse funds to flow to the relevant Hong Kong stock central enterprise listed companies, bringing new momentum to the reform and development of enterprises, and helping central enterprises to enhance their market recognition and value realization in the international capital market.

"The listing of the first central enterprise-themed ETF product in Hong Kong symbolizes another milestone for Hong Kong in contributing to the docking of central enterprises and state-owned enterprises with international capital, and promoting the linkage of domestic and foreign markets," said Xu Zhengyu, the Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region Government. Looking forward, he hopes to continue to guide more international funds and industrial resources to high-quality Hong Kong stock central enterprise listed companies through Hong Kong's international financing platform, helping them to develop with high quality.

Institutions are scrambling to enter the dividend track. This year, dividend assets with high dividends and high dividends have attracted much attention, and the performance of related indices has been relatively strong. Wind data shows that as of July 9th, the Guonew Hong Kong Stock Connect Central Enterprise Dividend Index (931722) has risen by 28.82% this year, while the Shanghai Stock Index fell by 1.2% during the same period. However, recently, the dividend-related indices have experienced a correction, with a decline of more than 5% in the last 4 trading days.

"The recent continuous strength of Hong Kong dividend assets followed by a slight correction reflects that after the continuous strength of dividends from the beginning of the year to the present, the short-term speculative sentiment of funds has increased," Huo Huaming, the fund manager of the GF CSI Guonew Hong Kong Stock Connect Central Enterprise Dividend ETF, told First Financial. He believes that Hong Kong stocks are expected to see positive changes in the aspects of capital, fundamentals, and sentiment, and may gradually repair along the path of the bottom gradually rising, and structural opportunities may be worth grasping.

In Huo Huaming's view, in the medium and long term, Hong Kong dividend assets are still worth paying attention to, mainly for three reasons: First, due to the rising expectations of the Federal Reserve's interest rate cut, it may catalyze the catch-up rally in the Hong Kong stock market; Second, the fundamentals of domestic dividend assets are expected to continue to be superior during the economic recovery period; Third, the logic of re-evaluation of the value of state-owned central enterprises is expected to be interpreted in the medium and long term.

"The newly introduced 'Nine Articles of the State' highlight the importance of dividends, with 'state-owned central enterprises' as a representative of high-quality Chinese enterprises, promoting the improvement of the governance system and the continuous change of the pricing system," Huo Huaming said. Dividend assets represented by "high dividends" are more adaptable to the new regulatory environment because they focus on indicators such as "shareholder returns" and "sustainable operations". Their profitability is more stable, and related assets are also continuously attracting the attention of long-term funds such as pensions, insurance, and financial management.

Zhang Xiaonan, the fund manager of the Jing Shun Great Wall CSI Guonew Hong Kong Stock Connect Central Enterprise Dividend ETF, also said that the scale of dividend strategy has grown rapidly, and dividends have become an important A-share investment strategy. With the increased attention of investors to dividend investment, the understanding is gradually deepening. In the weak recovery and low-interest-rate environment, the short-term dividend style is expected to continue to be superior.

"At present, the total amount of market trading logic lacks consensus, and the main line is relatively vague. At present, industries that can maintain high growth and high prosperity are relatively scarce. The difficulty of obtaining excess returns by anchoring prosperity has increased, and dividend assets with stable profitability and strong resistance to market fluctuations are expected to continue to outperform," Zhang Xiaonan said.As the dividend strategy continues to gain popularity, related thematic products have become the new direction that fund companies are vying to pursue. Wind statistics show that, as of July 10th, calculated from the subscription start date, more than 50 products (only counting initial funds, same below) with "dividend" in their names have been newly launched this year, with a total fundraising scale exceeding 17.2 billion yuan, far exceeding the performance of the whole of last year.

Currently, this track is continuously welcoming new members. According to an incomplete count by First Financial, there are currently 9 products such as the Fullgoal Central Enterprise Dividend ETF and the Agricultural Bank Dividend Selection A being issued, and there are 10 related thematic fund products waiting to be launched. There are also nearly 20 fund products in the queue awaiting approval.