The Zhitong Finance App learned that the increase in petroleum stocks increased in the afternoon. As of press release, Sinopec (00386) rose 3.73% to HK$5.01; CNPC (00857) rose 3.54% to HK$7.6; and CNOOC (00883) rose 2.41% to HK$20.4.

According to the news, the EIA announced the crude oil inventory situation for the week of May 3. EIA crude oil inventories fell 1.4 million barrels above expectations, and the market expected a drop of 1.1 million barrels. Oil prices closed slightly higher overnight. WTI crude oil futures closed up 0.27 US dollars, or 0.34%, to 79.26 US dollars/barrel in June; Brent crude oil futures closed up 0.30 US dollars, or 0.36%, to 83.88 US dollars/barrel in July. Furthermore, there are reports that domestic regulators are considering reducing the 20% income tax that mainland individual investors need to pay when receiving dividend dividends when investing in Hong Kong listed companies through the Hong Kong Stock Connect.

CICC believes that if the Hong Kong Stock Connect dividend tax relief is implemented, it is expected to further boost the enthusiasm of mainland investors to invest in Hong Kong stocks, especially in sectors related to high dividends. Everbright Securities previously stated that when calculating the dynamic dividend rate based on the stock price of February 23, 2024, the expected dividend rates for CNPC, Sinopec, and CNOOC A-shares in 2023 are 5.34%, 6.20%, and 4.64%, respectively. The dividend ratio is in a high position in the high-dividend sector.