Zhongtong Caijing APP learned that the telecommunication sector has experienced two consecutive days of heavy decline. As of press time, China United Network Communications (00762) fell by 5.19% to HKD6.76, China Telecom (00728) fell by 3.64% to HKD4.5, and China Mobile (00941) fell by 2.41% to HKD72.95.

Jianghai Securities pointed out that the central bank's sell-off of bonds under loan will affect the supply-demand relationship of bonds and disturb the yield curve, which may to some extent affect the investment logic of high dividend stocks. However, we believe that this impact is short-term. In the medium term, we see no change in the trend of domestic risk-free interest rate decline. Therefore, we reiterate that the dividend investment logic driven by high dividends has not changed, and that the growth trend does not necessarily mean that dividends will weaken. The two may coexist. When screening for high dividends, it is important to focus on profitability and dividend-paying ability, rather than simply the level of dividend yield. Therefore, those symbols with stable profitability and strong dividend-paying ability may provide better layout opportunities in recent fluctuations.

CICC released a research report stating that the high dividend style, which has led the way since the beginning of the year, has recently experienced a significant correction, once again sparking discussions in the market about whether the high dividend factor has "fizzled out." We believe that the recent correction in the seemingly high dividend sector may not necessarily be attributable to the dividend factor itself, but more to industry factors; it is normal for the high dividend factor, after experiencing a large increase, to retreat due to rotation. It is recommended to be cautious when the dividend yield is less than 4% (less than 5% for HK stocks). When screening for high dividends, it is necessary to focus on not only the level of dividend yield, but also on the ability to generate profits and pay dividends. Therefore, those symbols with stable profit and strong dividend-paying ability may provide better layout opportunities in recent fluctuations.