Wind data reveals that over the past week, the 10-year Chinese government bond yield has been repeatedly testing the 1.7% threshold. With US inflation continuing to cool and rate hike expectations receding, external constraints have loosened, and on August 17, 2026, the 10-year yield once again broke below the 1.7% mark, dipping to around 1.69%—a fresh one-year low. The sustained decline in risk-free rates is likely to further enhance the relative appeal of high-dividend assets—in a low-interest-rate macro environment, Hong Kong dividend-focused assets that offer relatively stable cash flows and income returns are increasingly becoming a key allocation target for long-term capital, thanks to their standout yield advantages.

Since August, the dividend yield of the Hang Seng Stock Connect High Dividend Low Volatility Index tracked by the HUATAI BAIRUI HANG SENG HONG KONG STOCK CONNECT HIGH DIVIDEND LOW VOLATILITY TRADING OPEN ENDED INDEX SECURI (520890) has been climbing steadily, currently reaching 5.5%. This not only widens the spread over the 10-year government bond yield to a level exceeding 51.1% of the past decade's observations, but also surpasses the dividend levels of several mainstream A-share and Hong Kong dividend indices, including the CSI Dividend Index at 4.4%, the Shenzhen Dividend Index at 3.3%, the Hong Kong Stock Connect SOE Dividend Index at 5.3%, and the Hang Seng Stock Connect Mainland China Enterprises High Dividend Index at 5.1%.

This prominent "high-dividend" characteristic drove a significant uptick in trading activity for the HUATAI BAIRUI HANG SENG HONG KONG STOCK CONNECT HIGH DIVIDEND LOW VOLATILITY TRADING OPEN ENDED INDEX SECURI (520890) on August 17, with single-day turnover surging nearly 61% compared to the prior session, while daily net inflows hit the second-highest level of the year—underscoring the market's enthusiasm for allocating to Hong Kong high-dividend assets.

The Hang Seng Stock Connect High Dividend Low Volatility Index, tracked by the HUATAI BAIRUI HANG SENG HONG KONG STOCK CONNECT HIGH DIVIDEND LOW VOLATILITY TRADING OPEN ENDED INDEX SECURI (520890), employs a strategy that layers a "low volatility" factor on top of "high dividends," selecting quality Hong Kong stocks with higher dividend yields and lower volatility from the Stock Connect universe. This approach aims to secure steady dividend income while reducing portfolio volatility.

After a broad recovery in global equity markets recently, some overseas expectations have begun to stir again. On one hand, while US July inflation data met expectations, the still-unresolved shipping disruptions and lingering data uncertainty mean the Fed's policy path remains difficult to predict; on the other hand, on August 10, the Bank of Japan's July policy meeting summary released hawkish signals, reigniting market volatility. Against this backdrop, Hong Kong dividend assets, as core allocation options, may continue to play a vital role in risk diversification and portfolio balancing. Combined with the low-volatility strategy, the HUATAI BAIRUI HANG SENG HONG KONG STOCK CONNECT HIGH DIVIDEND LOW VOLATILITY TRADING OPEN ENDED INDEX SECURI (520890) could see its defensive edge further amplified in Hong Kong's more turbulent equity market.

Taking the total return index, which includes dividend reinvestment, as an example: as of August 17, 2026, the Hang Seng Stock Connect High Dividend Low Volatility Total Return Index has posted a cumulative gain of 71.29% over the past three years. This not only outpaces A-share mainstream dividend indices such as the CSI Dividend Total Return Index (23.41%) and the Shenzhen Dividend Total Return Index (6.21%), but also outperforms major Hong Kong tech indices like the Hang Seng Tech Total Return Index (19.52%), demonstrating impressive long-term performance and potentially reinforcing mainstream capital's preference for Hong Kong dividend low-volatility strategies.

Notably, southbound capital has also been steadily flowing into Hong Kong dividend assets, further strengthening this allocation logic from a liquidity perspective. As of August 17, southbound investors collectively held 504.390 billion shares of Stock Connect targets, representing 19.62% of total shares outstanding. According to HKEX industry classifications, stocks with southbound holdings exceeding 20% are predominantly concentrated in high-dividend sectors such as industrials (47 stocks) and financials (34 stocks), further validating domestic long-term capital's recognition of Hong Kong dividend asset value.

Per its contractual terms, the HUATAI BAIRUI HANG SENG HONG KONG STOCK CONNECT HIGH DIVIDEND LOW VOLATILITY TRADING OPEN ENDED INDEX SECURI (520890) and its feeder funds (Class A 025937 / Class C 025938) may distribute income up to 12 times per year when distribution conditions are met, potentially providing investors with greater flexibility in cash flow management and aiming to enhance the overall holding experience.

The HUATAI BAIRUI HANG SENG HONG KONG STOCK CONNECT HIGH DIVIDEND LOW VOLATILITY TRADING OPEN ENDED INDEX SECURI (520890) is a product of Huatai-PineBridge Fund Management. As one of China's first ETF managers, the firm has accumulated over 19 years of experience in dividend-themed index investing, building a diversified "dividend family" with total assets under management reaching RMB 60.212 billion, accounting for nearly 30% of the total scale of A-share dividend ETFs. Among its offerings: the Dividend ETF Huatai-PineBridge (510880), the first A-share dividend-themed index fund, had 416,700 holders as of end-2025, the only dividend-themed ETF with over 400,000 holders in the market; the Dividend Low Volatility ETF Huatai-PineBridge (512890), the first and only A-share dividend low-volatility ETF exceeding RMB 30 billion, with 1.4711 million holders in its feeder funds; the SOE Dividend ETF Huatai-PineBridge (561580), the first A-share "SOE + dividend" dual-themed ETF; the Hong Kong Stock Connect Dividend ETF Huatai-PineBridge (513530) and the HUATAI BAIRUI HANG SENG HONG KONG STOCK CONNECT HIGH DIVIDEND LOW VOLATILITY TRADING OPEN ENDED INDEX SECURI (520890), both focused on Hong Kong high-dividend assets—the former adopting a QDII model with advantages on Hong Kong dividend taxes, while the latter incorporates a low-volatility factor for enhanced defensiveness in Hong Kong's volatile market; the Dividend Quality ETF Huatai-PineBridge (561630), using a "dividend + quality" dual-factor stock selection strategy to identify high-dividend names with solid fundamentals and superior profitability, leaning toward growth; and the Dividend Low Volatility 50 ETF Huatai-PineBridge (561450), which builds on "dividend + low volatility" factors while focusing on quality blue-chips.