Glonghui, May 14 | Huachuang Securities Research Report pointed out that recently, dividend assets have performed well in the Hong Kong stock market. In particular, in the context of the policy of deepening cooperation between the Securities Regulatory Commission and the Hong Kong side, southbound trading expectations have increased, and trading activity in the dividend sector may increase in the short term. The liquidity of Hong Kong stocks will be positively affected in the long run. Under the current dividend tax policy, mainland individual and institutional investors face higher tax rates, up to 28%, while Hong Kong account investors have lower tax rates. This has become one of the factors affecting the attractiveness of Hong Kong Stock Connect. If the Hong Kong Stock Connect dividend tax policy is optimized, especially if the tax rate is reduced to a level similar to that of investors with Hong Kong accounts (about 10%), it will directly benefit mainland investors and significantly reduce their tax burden. It is estimated that 2024 will save about 25 billion yuan in tax amounts, greatly increasing the attractiveness of Hong Kong stock dividend assets to the south. This policy change may not only boost high-dividend stock trading in the short term, but in the long run it is more conducive to enhancing the overall liquidity of the Hong Kong stock market. In this context, because the Hong Kong Stock Media Internet sector has entered a stage of high-quality development, profits and cash flow have improved markedly, dividend ratios have increased, and dividend attributes are prominent. Once the dividend tax is lowered, mainland Hong Kong Stock Connect investors will enjoy a higher dividend rate after tax, further enhancing the investment value of this sector. In summary, investors are advised to pay attention to companies with high quality development and stable dividends in the Hong Kong stock media internet sector, such as Tencent Holdings and Xinhua Wenxuan, and also pay attention to the dividend potential of the higher education sector, and recommend China Education Holdings, China Science and Technology, China Chunlai, NetDragon, and China Oriental Education. These companies combine the characteristics of steady growth, undervaluation and high dividends, and are expected to benefit significantly from potential dividend tax optimization.