Gelonghui, December 31 | At the turn of the year, the style of A-shares has switched, with micro-cap stocks continuously weakening, while the dividend Sector represented by banks and insurance continues to strengthen. The CSI Dividend Index has risen by 4% in December, while the dividend index of State-Owned Enterprises Listed on HKEx has increased by 6% during the same period. Reviewing the reasons for the style switch, on one hand, the new Delisting regulations will be implemented alongside the 2024 annual report forecasts, leading to "Bullish fulfillment" for small-cap stocks. On the other hand, the end of the year and the beginning of the new year is a period of rapid premium growth, and insurance funds have a strong motivation to increase allocation to high-dividend stocks. On the news front, the Hong Kong Stock Exchange disclosed last Friday that Ping An Insurance has recently first acquired shares in China Construction Bank Listed in Hong Kong, followed by a substantial increase in shareholding in Industrial And Commercial Bank Of China Listed in Hong Kong, with a total investment of approximately HKD 0.95 billion. From a long-term perspective, Guosen Securities believes that the policies such as "New National Nine Articles" and the market cap management of state-owned enterprises are bullish, coupled with the extremely low historical Treasury bond rates, leading to an increase in allocation demand from long-term funds such as insurance and social security. In addition, the dividend yield of dividend-type assets in the Hong Kong stock market has long been higher than that of dividend-type assets in the A-share market. With the continuous advancement of policies, state-owned enterprises are expected to further reshape their valuations. From a capital perspective, southbound funds will continue to flow into the Hong Kong stock market in 2024, with a cumulative net inflow of over HKD 780 billion so far this year. Representative dividend strategy ETFs and their performance as of the time of this report: "Central State-owned Enterprises + High Dividend Stocks": Stated-Owned Enterprises Listed on HKEx Dividend ETF (513910), +0.52%. "High Dividend + Low Volatility" strong combination: China Southern S&P China A-Share Large-Cap Dividend Low Volatility 50 ETF (159547), +0.77%. "Hong Kong Stocks + State-Owned Enterprises" dual approach: Hong Kong National Enterprises ETF (513810), +0.37%. Gathering leading bank stocks: HUAXIAYINJI (515020), +0.51%. Value + Growth New Core Broad-Based: A500ETF Fund (512050), -0.31%.