Looking back at 2024, as the global macroeconomic environment continues to change and China's capital markets undergo ongoing deep reforms, the Hong Kong stock market has encountered both challenges and opportunities. Against this backdrop, the adjustment of policy direction and changes in market demand have together promoted further improvements in the dividend policies of listed companies, leading to a significant rise in the status of high dividend strategies in the Hong Kong stock market.

According to the closing data on December 17, those with higher dividend yields.$Hang Seng China Enterprises Index (800100.HK)$The cumulative increase this year has exceeded 23%, a performance that clearly outperforms.$Hang Seng TECH Index (800700.HK)$16.6% and $Hang Seng Index (800000.HK)$a rise of 15.56%.

Furthermore, based on the closing of Hong Kong stocks on December 16, according to Futubull data,$CHINAHONGQIAO (01378.HK)$it has accumulated more than 111% growth this year, making it the strongest high-yield Hong Kong stock!$COSCO SHIP HOLD (01919.HK)$、$PICC GROUP (01339.HK)$Increased by over 70%,$CITIC BANK (00998.HK)$、$CHINA COAL (01898.HK)$、$CNOOC (00883.HK)$、$ABC (01288.HK)$Increased by more than 50%.$CCB (00939.HK)$、$BANK OF CHINA (03988.HK)$、$CHINA SHENHUA (01088.HK)$Rising over 40%, the dividend yield of these stocks currently exceeds 6%.

Specifically, since the second half of 2023, the Chinese government and regulatory agencies have paid great attention to the dividend policies of state-owned listed companies, introducing a series of measures to encourage and guide. Several important central documents clearly state that listed companies should actively enhance their operating efficiency, yield, and dividend levels to better reward investors and promote the stability and development of the Capital Markets.

On December 17, news from the market reported that the State-Owned Assets Supervision and Administration Commission of the State Council issued the 'Several Opinions on Improving and Strengthening the Market Value Management of Central Enterprises Controlling Listed Companies'. The commission stated that next, it will focus on implementing the 'Opinions', making enhancing the investment value of central enterprises controlling listed companies and reinforcing investor returns a long-term task, guiding and promoting central enterprises to effectively utilize market value management tools, actively respond to market concerns, protect investor interests, and contribute to the high-quality development of Capital Markets.

These policies have had a crucial impact on the dividend management of large market-cap, stable-performing state-owned and central enterprise listed companies. As the backbone of market dividends, these enterprises are expected to significantly enhance their dividend stability, payout ratios, and willingness to distribute dividends, thereby providing investors with more reliable and stable returns.

Additionally, against the backdrop of continuously declining domestic bond yields, the phenomenon of 'asset shortage' is becoming increasingly prominent. Currently in the market, the yields on both the asset and liability sides are declining, but the decline in yields on the asset side is noticeably faster than the interest rates on the liability side. This change has led to a sustained increase in market demand for assets with higher yields and stronger certainty.

Therefore, high-dividend Stocks have naturally become the focus of market attention, as they not only provide stable cash flow returns but also help investors seek relatively certain investment opportunities amidst market volatility.

Since the Hong Kong stock market gathers a large number of quality listed state-owned enterprises, many of which have high dividend yields. Particularly in traditional high-dividend Sectors such as banks, construction, and energy, central state-owned enterprises are predominant, and these companies typically have stable profitability and good dividend records. Furthermore, with the valuation adjustments in the Hong Kong stock market over the past two years, more companies have passively joined high-dividend varieties, further enhancing the success of high-dividend strategies under the defensive characteristic of the Hong Kong stock market.

2025 High-Dividend Strategy Outlook

Looking ahead to 2025, analysts believe that high-dividend bank stocks in the Hong Kong stock market are still worthy of continuous attention from investors. These bank stocks not only possess stable profitability but can also provide investors with continuous cash flow returns through good dividend policies. In the context of 'asset scarcity,' these high-dividend bank stocks can still become the focus of the market.

In addition to bank stocks, traditional high-dividend sectors such as construction and energy will also be worth paying attention to. These companies usually have relatively mature business models and stable customer bases, enabling them to maintain high profitability. At the same time, with valuation adjustments, the rising valuations of these companies also hope to bring more investment returns to investors.

Moreover, some emerging industries and high-tech companies are also beginning to implement high-dividend strategies. Although these companies typically have higher growth potential and volatility, they can provide certain cash flow returns to investors by optimizing their dividend policies.

CMB International further pointed out that as the market generally expects the long-term bond yield to continue to decline in 2025, insurance companies and pension funds that rely on holding a large amount of bonds to generate high interest income to meet long-term debt demands will face challenges in the future. This trend is expected to promote the shift of investors' asset allocation goals towards companies with high dividend yields, serving as an alternative option for risk avoidance strategies.

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