Market Review and Key Views: In the Hong Kong stock market, the Hang Seng Stock Connect China Central SOE Dividend Index fell 0.86% last week, the Hang Seng Index declined 0.18%, and the Hang Seng Tech Index rose 1.97%. In the A-share market, the CSI Central SOE Dividend Index dropped 1.91% last week, while the CSI 300 fell 0.01%. (Data source: Wind, as of September 18, 2026; all figures represent total return index performance.)

Last week, Hong Kong stocks remained range-bound, with the pharmaceutical and technology sectors recovering somewhat while the energy sector pulled back. Sector rotation continued, but assets with stable earnings and cash dividend capabilities remained a focus for the market. The Federal Reserve's rate hike last week placed some short-term valuation pressure on Hong Kong dividend assets. In this environment, whether dividends can be supported by operational improvements has become an important basis for judging dividend value.

Banks are a key component of the Stock Connect Central SOE Dividend Index. Looking at recent semi-annual reports, large banks have shown positive changes in both profitability and dividends. Taking China Construction Bank as an example, deposit interest costs declined in the first half, the net interest margin improved, and both net interest income and net profit achieved growth. The board of directors plans to raise the interim dividend payout ratio from 30% to 31%. Improved liability costs driving a recovery in operating performance have given the increase in dividend payout ratio a more solid earnings foundation. If interest margins remain stable and asset quality stays sound going forward, the banking sector's dividend returns are still expected to provide support for the index.

From an industry perspective, state-owned major banks have all continued to propose interim dividend plans this year, with payout ratios generally raised. The gradual normalization of interim dividends allows investors to see corporate earnings converting into cash dividends more promptly and also enhances the predictability of full-year dividend arrangements. This change is particularly important for the Stock Connect Central SOE Dividend Index. The index covers multiple large banks, and the operational improvements and dividend realization of bank stocks help consolidate the index's dividend return foundation.

China-U.S. trade teams recently held consultations in New York, providing a new window for observing the stabilization of external expectations. If further progress is made in bilateral communication, overall risk appetite in Hong Kong stocks is expected to improve, and dividend assets may also gain room for valuation recovery beyond dividend returns.

The Stock Connect Central SOE Dividend Index offers a higher dividend yield and lower valuation. The Hang Seng Stock Connect China Central SOE Dividend Index has a dividend yield of 5.23% (vs. CSI Dividend at 4.31%), a PB of 0.59, and a PE of 7.14. Its total return index has achieved a cumulative return of 113% over the past five years, with excess returns of 94% relative to the Hang Seng Total Return Index. The CSI Central SOE Dividend Index has a dividend yield of 4.20%, a PB of 0.87, and a PE of 8.99, with a cumulative total return of 34% over the past five years and excess returns of 29% relative to the CSI 300 Total Return Index. (Data source: Wind, as of September 18, 2026)

Looking ahead, the low interest rate environment under the domestic rate cut cycle and the backdrop of weak economic recovery are both favorable for dividend strategies. Under the market value management directive, central SOEs have strong willingness and capability to pay dividends. The Hua'an Hang Seng Stock Connect China Central SOE Dividend ETF (513920) and the Hua'an Central SOE Dividend ETF (561060) have high allocation value.

Hua'an Hang Seng Stock Connect China Central SOE Dividend ETF (513920) Product Overview

The Stock Connect Central SOE Dividend ETF (513920) is the first ETF in the entire market to combine the triple attributes of Hong Kong stocks, central SOEs, and dividends. It is also the largest ETF tracking the Hang Seng Stock Connect China Central SOE Dividend Index (HSSCSOY), which captures high-quality, high-dividend central SOEs in Hong Kong stocks in a single index. Related off-exchange products include: Hua'an Hang Seng Stock Connect China Central SOE Dividend ETF Feeder A (020866) / Feeder C (020867).

Central SOE Dividend ETF (561060) Product Overview

The Central SOE Dividend ETF (561060) tracks the CSI Central SOE Dividend Index, which selects 100 stocks from state-owned enterprises with high cash dividend yields, relatively stable dividend payments, and a certain scale and liquidity, reflecting the overall performance of representative high-dividend state-owned enterprises in the A-share market. Related off-exchange products include: Hua'an CSI Central SOE Dividend ETF Feeder A (020461) / Feeder C (020462).

Fee Disclosure: Hua'an Hang Seng Stock Connect China Central SOE Dividend ETF Feeder A (020866) — for a single subscription amount M < 500,000, the subscription fee rate is 0.60%; for a single subscription amount 500,000 ≤ M < 1,000,000, the subscription fee rate is 0.30%; for a single subscription amount M ≥ 1,000,000, the subscription fee is 1,000 yuan per transaction. For redemption, if the holding period Y < 7 days, the redemption fee rate is 1.50%; if the holding period Y ≥ 7 days, the redemption fee rate is 0.00%. Management fee rate: 0.50%; custody fee rate: 0.10%. Hua'an Hang Seng Stock Connect China Central SOE Dividend ETF Feeder C (020867) — subscription fee rate: 0.00%. For redemption, if the holding period Y < 7 days, the redemption fee rate is 1.50%; if the holding period Y ≥ 7 days, the redemption fee rate is 0.00%. Management fee rate: 0.50%; custody fee rate: 0.10%; sales service fee: 0.25%. Hua'an CSI Central SOE Dividend ETF Feeder A (020461) — for a single subscription amount M < 1,000,000, the subscription fee rate is 0.60%; for a single subscription amount 1,000,000 ≤ M < 5,000,000, the subscription fee rate is 0.30%; for a single subscription amount M ≥ 5,000,000, the subscription fee is 1,000 yuan per transaction. For redemption, if the holding period Y < 7 days, the redemption fee rate is 1.50%; if the holding period Y ≥ 7 days, the redemption fee rate is 0.00%. Management fee rate: 0.50%; custody fee rate: 0.10%. Hua'an CSI Central SOE Dividend ETF Feeder C (020462) — subscription fee rate: 0.00%. For redemption, if the holding period Y < 7 days, the redemption fee rate is 1.50%; if the holding period Y ≥ 7 days, the redemption fee rate is 0.00%. Management fee rate: 0.50%; custody fee rate: 0.10%; sales service fee: 0.25%. Regarding ETF product subscription/redemption fee rates, when investors process cash subscriptions or redemptions, sales institutions may charge a fee/commission at a standard not exceeding 0.5%, which includes related fees charged by exchanges, registration and settlement institutions, etc.

Risk Disclosure: The above is merely an objective introduction of the current constituent stock distribution of the underlying index and does not constitute any investment advice or guarantee of investment returns. The index company may subsequently adjust the index compilation methodology, and the composition and weights of index constituent stocks may change dynamically. Please pay attention to the risk of relatively large weights and high concentration of certain index constituent stocks. This fund is an equity fund, belonging to a fund category with relatively higher risk and relatively higher expected returns. It mainly invests in constituent stocks and alternative constituent stocks of the underlying index, and its feeder fund primarily tracks the performance of the target ETF to closely mirror the underlying index. The expected returns and risks of this fund are higher than those of money market funds, bond funds, and mixed funds, and it has risk-return characteristics similar to those of the underlying index. The fund management company does not guarantee that this fund will be profitable, nor does it guarantee minimum returns. Past performance of the fund does not predict its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund product returns are subject to fluctuation risks. Invest with caution. For details, please carefully read the fund contract, prospectus, and other fund legal documents.