On August 18, the financial regulator signaled support for domestic insurers to participate in the cross-border connectivity between mainland and Hong Kong financial markets, allowing them to invest in Hong Kong-listed exchange-traded funds through the Shanghai-Shenzhen-Hong Kong Stock Connect. This move marks a significant step in deepening financial market integration and is poised to inject fresh momentum into Hong Kong's asset management industry. As one of the most critical long-term capital sources in the A-share market, insurers expanding their investment scope to Hong Kong ETFs could channel substantial incremental funds into the region's equities.

Given that insurers naturally favor high-dividend, low-volatility assets, this aligns well with the positioning of the HUATAI BAIRUI HANG SENG HONG KONG STOCK CONNECT HIGH DIVIDEND LOW VOLATILITY TRADING OPEN ENDED INDEX SECURI (520890), which tracks the Hang Seng Hong Kong Stock Connect High Dividend Low Volatility Index. This index selects quality Hong Kong-listed stocks with relatively high dividend yields and lower volatility from the Stock Connect universe, layering a "low volatility" factor on top of the "high dividend" foundation. According to Wind data, as of August 18, the index's latest dividend yield has climbed to 5.45%, maintaining a wide spread against the 10-year government bond yield of 1.69%, placing it in a historically elevated range near the 50.31% percentile over the past decade. Compared with mainstream dividend indices across A-shares and Hong Kong stocks—such as the CSI Dividend Index (4.36%), SZSE Dividend Index (3.30%), Stock Connect Central SOE Dividend Index (5.31%), and Hang Seng Stock Connect China Mainland Enterprises High Dividend Yield Index (5.13%)—its higher yield advantage is also clearly evident.

With Hong Kong stocks currently in their peak dividend season, the dense cash distributions from constituent companies are expected to provide solid support for the index's dividend yield. Since July, constituents of the Hang Seng Hong Kong Stock Connect High Dividend Low Volatility Index have collectively implemented cash dividends totaling RMB 82.29 billion, accounting for nearly 50% of the RMB 164.604 billion in total cash dividends paid by all Hong Kong-listed stocks during the same period. Backed by relatively stable industry positions and ample cash flows, this is likely to further consolidate the fundamental foundation of the index's high dividend yield.

Beyond the attractive dividend returns, Hong Kong dividend assets have also demonstrated a "balanced offense and defense" profile in volatile market conditions. Taking the total return index, which includes dividend reinvestment, as an example, as of August 18, 2026, the Hang Seng Hong Kong Stock Connect High Dividend Low Volatility Total Return Index has posted a cumulative gain of 72.38% over the past three years. This not only outpaces A-share mainstream dividend indices like the CSI Dividend Total Return Index (24.18%) and SZSE Dividend Total Return Index (5.56%), but also surpasses certain major Hong Kong tech indices, such as the Hang Seng Tech Total Return Index (17.53%), showcasing a notably strong long-term performance track record. This is expected to further reinforce mainstream investors' preference for Hong Kong dividend low-volatility strategies.

Driven by the index's relatively outstanding "high dividend, low volatility" characteristics, the HUATAI BAIRUI HANG SENG HONG KONG STOCK CONNECT HIGH DIVIDEND LOW VOLATILITY TRADING OPEN ENDED INDEX SECURI (520890) continues to attract capital inflows. Wind data shows that on August 17, the product not only saw its single-day turnover rise nearly 61% year-on-year but also recorded a single-day net inflow hitting a new high for the year. Huatai Securities notes that the Hong Kong stock sentiment index, which entered the panic zone on June 3 signaling a buying opportunity, has since recovered to near the optimistic zone. Markets from August onward are likely to return to a fundamentals-driven main theme, with structural rallies in strong fundamental sectors persisting. Some capital may rotate from growth tracks toward low-valuation, high-certainty sectors. In this context, Hong Kong dividend assets, which are predominantly concentrated in mature business sectors such as banking, utilities, energy, and transportation, offer stable operating cash flows, relatively smaller earnings fluctuations, and lower correlation with tech growth. This enables effective portfolio risk diversification, making their defensive advantages more prominent in the highly volatile Hong Kong market.

As per 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) are eligible for up to 12 dividend distributions per year when income distribution conditions are met. This flexibility in cash payouts aims to enhance investor experience by providing more control over capital allocation.

Backed by Huatai-PineBridge Fund Management, one of the first ETF managers in China, the company brings over 19 years of experience in dividend-themed index investing. This expertise underpins its "Dividend Family" product suite, which spans multiple strategies and manages a total of RMB 60.149 billion, accounting for nearly 30% of the total scale of dividend-themed ETFs across the market. Among these, the Dividend ETF (510880) stands as the first dividend-themed index fund in A-shares, with 416,700 holders as of the end of 2025, making it the only dividend-themed ETF with over 400,000 holders. The Dividend Low Volatility ETF (512890) is the first of its kind in A-shares and currently the only dividend low-volatility ETF exceeding RMB 30 billion, with its feeder fund serving 1,471,100 holders. The Central SOE Dividend ETF (561580) is A-shares' first dual-themed "Central SOE + Dividend" ETF. Meanwhile, the Stock Connect Dividend ETF (513530) and the Stock Connect Dividend Low Volatility ETF (520890) target high-dividend assets in Hong Kong—the former using a QDII structure to offer advantages in Hong Kong dividend tax, while the latter incorporates a low-volatility factor for stronger defensive attributes in the volatile Hong Kong market. The Dividend Quality ETF (561630) employs a "Dividend + Quality" dual-factor stock selection strategy to identify high-dividend stocks with solid fundamentals and robust profitability, featuring a more growth-oriented style. The Dividend Low Volatility 50 ETF (561450) builds on the "Dividend + Low Volatility" dual factors, focusing on high-quality blue-chip stocks.