According to the latest research from institutions, since July, the market style has been gradually shifting toward balance, with capital beginning to rebalance toward low valuations, large market capitalizations, and stable cash flows. As a result, the relative performance of stable dividend-yielding assets such as banks and utilities has improved. So, is now the right time to focus on high-dividend strategies? (Source: Huatai Securities, "Monthly Analysis on High-Dividend: Rebalancing Value Remains," August 4, 2026)

Is the High-Dividend Strategy Suitable for the Current Market?

Combining institutional research reports, we can analyze the logic behind current dividend assets from three dimensions: capital rebalancing, portfolio volatility management, and long-term returns. In a low-interest-rate environment, dividend assets are increasingly favored by stable capital. As risk-free rates continue to decline, the bond-like attributes of bank stocks are becoming more prominent, potentially attracting sustained attention from steady investors. Wind data shows that on August 14, the 10-year government bond yield further fell to 1.69%, marking the first time it dropped below the 1.70% threshold since Q4 2025, reinforcing the relative value advantage of high-dividend assets. (Data source: Wind, as of August 14, 2026; Reference: Huachuang Securities, "From Offense to Balance: Dividend as a Low-Volatility Ballast—Multi-Industry Joint Dividend Asset July Report," August 8, 2026)

Meanwhile, although there are still some short-term disturbances at the macro level—such as the pace of stabilization in banks' net interest margins requiring observation, limited room for interest rate cuts, the need to solidify the foundation of real estate market recovery, and the incomplete adjustment of household sector balance sheets—these factors actually highlight the defensive nature and attractiveness of dividend assets in a low-rate environment. Institutions expect that in the second half of the year, market risk appetite may gradually rebalance, and dividend assets along with pro-cyclical sectors with low valuations may gain more structural opportunities. (Reference: Changjiang Securities, "Banking Weekly Tracking 2026 Week 32: The Allocation Window for Dividend Assets," August 17, 2026)

In a Fluctuating Market, the Defensive Attributes of High-Dividend Assets May Draw Renewed Attention

Wind data shows that as of August 19, 2026, the volatility of the high-dividend strategy index over the past three years was 1.97%, lower than the CSI 300's 2.38%. Institutions point out that with recent pullbacks in the market and the tech sector, the defensive characteristics of dividend assets have once again come to the fore. If we extend the horizon to the next six months to a year, their defensive nature should continue to be emphasized. This is not merely based on short-term style shifts but also to address uncertainty in the complex second-half environment, potentially meeting the need to reduce portfolio volatility and achieve a higher Sharpe ratio. (Data source: Wind, statistics period: August 20, 2023, to August 19, 2026; Reference: Huachuang Securities, "From Offense to Balance: Dividend as a Low-Volatility Ballast—Multi-Industry Joint Dividend Asset July Report," August 8, 2026)

Looking ahead, factors such as the pace of overseas central bank monetary policy, the evolution of international trade patterns, phased changes in the geopolitical environment, and the commercial validation of AI industry trends may collectively impact market risk appetite. In particular, if overseas monetary policy takes an unexpectedly hawkish turn, the market's volatility center may not decline quickly. In this context, provided it aligns with one's risk tolerance, dividend assets should be given greater attention. Their stable dividend cash flows and low-volatility characteristics may help smooth portfolio net value fluctuations and continuously improve the overall risk-reward profile. (Reference: Huachuang Securities, "From Offense to Balance: Dividend as a Low-Volatility Ballast—Multi-Industry Joint Dividend Asset July Report," August 8, 2026)

Dividend Flexibility Emerges, Laying the Foundation for "Cross-Cycle Investing"

From a long-term perspective, stable dividend cash flows may provide a relatively certain return base for investment, while sustained growth in corporate earnings should not be overlooked. Some institutions further analyze that if the PPI remains at a mid-to-high level of 2%-4% in the second half of the year, growth will also be an important screening dimension within the dividend space. Based on corporate earnings tracking and earnings upgrade distribution, growth advantages are concentrated in resource products (such as non-ferrous metals, chemicals, and special steel), as well as light manufacturing, logistics, and computer equipment. Among high-dividend stocks, sectors with more notable earnings upgrades include power and insurance. (Reference: Huachuang Securities, "From Offense to Balance: Dividend as a Low-Volatility Ballast—Multi-Industry Joint Dividend Asset July Report," August 8, 2026)

How to Seize Opportunities in Dividend Assets?

Some institutions suggest that given the increased volatility in overseas tech markets, the earnings verification period for interim reports, and the rising need for institutional capital to reduce industry concentration and control portfolio drawdowns, the rebalancing of capital styles is expected to continue, potentially providing marginal tailwinds for dividend assets. At the same time, the preference of insurance capital for OCI accounts and the reallocation demand under the low-interest-rate "asset shortage" could provide solid incremental capital support for high-dividend assets with stable earnings and predictable cash flows, further strengthening the logic behind dividend assets. (Reference: Huatai Securities, "Monthly Analysis on High-Dividend: Rebalancing Value Remains," August 4, 2026)

Interested investors, within their own risk tolerance, may consider High-Dividend ETF Yinhua (563180) and its feeder funds (Class A: 022144; Class C: 022145), as well as HK High-Dividend ETF Yinhua (159302). These focus on leading companies with good liquidity and high dividend payout ratios in both A-shares and HK stocks, aiming to capture investment opportunities in the dividend theme across both markets.

Risk Disclosure:

High-Dividend ETF Yinhua Fee Schedule: Subscription/Redemption Fee: Authorized brokers may charge commissions up to 0.50%; Management Fee: 0.50%/year; Custody Fee: 0.10%/year; Comprehensive Fund Operation Fee (annualized): 0.66%. Note: Fee details are per the Fund Product Data Summary as of April 17, 2026; please refer to the latest fund announcements and legal documents.

Yinhua CSI High-Dividend Strategy ETF Feeder Fund Fee Schedule: Class A Subscription Fee: M < 1 million yuan: 1.20%; 1 million ≤ M < 2 million yuan: 0.90%; 2 million ≤ M < 5 million yuan: 0.60%; M ≥ 5 million yuan: Fixed 1,000 yuan per transaction. Class A Redemption Fee: N < 7 days: 1.50%; 7 days ≤ N < 30 days: 0.50%; N ≥ 30 days: 0. Class C Redemption Fee: N < 7 days: 1.50%; N ≥ 7 days: 0. Management Fee: 0.50%/year; Custody Fee: 0.10%/year; Class C Sales Service Fee: 0.25%/year. Note: Fee details are per the Fund Product Data Summary as of December 8, 2025; please refer to the latest fund announcements and legal documents.

HK High-Dividend ETF Yinhua Fee Schedule: Subscription/Redemption Fee: Authorized brokers may charge commissions up to 0.50%; Management Fee: 0.15%/year; Custody Fee: 0.05%/year; Comprehensive Fund Operation Fee (annualized): 0.48%. Note: Fee details are per the Fund Product Data Summary as of August 3, 2026; please refer to the latest fund announcements and legal documents.

Investing involves risk; caution is required. A fund is a long-term investment tool whose primary function is to diversify investments and reduce the individual risk of investing in a single security. Funds differ from financial instruments such as bank deposits that provide fixed income expectations. When you purchase a fund product, you may share in the gains generated by the fund's investments based on your holdings, but you may also bear losses arising from the fund's investments. Before making an investment decision, please carefully read the fund contract, fund prospectus, fund product data summary, and other legal documents and this risk disclosure statement. Fully understand the fund's risk-return characteristics and product features, carefully consider the various risk factors, and evaluate your own risk tolerance based on your investment objectives, investment horizon, investment experience, and asset status. Make rational judgments and cautious investment decisions after understanding the product and sales suitability opinions.

In accordance with relevant laws and regulations, Yinhua Fund Management Co., Ltd. makes the following risk disclosures: 1. Depending on the investment target, funds are categorized into stock funds, mixed funds, bond funds, money market funds, fund of funds, commodity funds, and other types. Different types of funds offer different return expectations and carry varying degrees of risk. Generally, the higher the expected return, the greater the risk. 2. Funds may face various risks during operation, including market risk, as well as the fund's own management risk, technical risk, and compliance risk. The risk of substantial redemption is a unique risk of open-end funds—if net redemption applications on a single trading day exceed a certain percentage of the fund's total shares (10% for open-end funds, 20% for periodic open-end funds, except for special products approved by the CSRC), you may not be able to redeem all shares in a timely manner, or redemption payments may be delayed. 3. You should fully understand the difference between regular fixed-amount investments and savings methods like zero-deposit lump-sum withdrawal. Fixed-amount investment is a simple way to guide investors toward long-term investing and average investment costs, but it does not avoid the inherent risks of fund investment, guarantee returns, or serve as an equivalent savings alternative. 4. Special product type risk disclosures: 1) Please pay attention to the risks of underlying index volatility and the specific risks of ETF (Exchange-Traded Fund) investments. Feeder funds invest in underlying ETFs; please be aware of the specific risks of feeder funds, including tracking deviation risk, performance difference risk relative to the target ETF, other risks of investing in the target ETF, and the risk of failing to achieve the agreed tracking error control target. 2) The HK High-Dividend ETF may invest in stocks eligible for Stock Connect; it will face specific risks arising from differences in the investment environment, investment targets, market systems, and trading rules under the Stock Connect mechanism. 5. The fund manager promises to manage and use fund assets with honesty, good faith, diligence, and responsibility, but does not guarantee that the fund will be profitable or provide a minimum return. The fund's past performance and net value levels do not indicate future performance; the performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Yinhua Fund Management Co., Ltd. reminds you of the "buyer beware" principle in fund investment. After making an investment decision, you bear the investment risks arising from fund operations and net value changes. The fund manager, custodian, sales institutions, and related parties do not make any promises or guarantees regarding fund investment returns. 6. This fund is established by Yinhua Fund Management Co., Ltd. in accordance with relevant laws and regulations and approved for registration by the China Securities Regulatory Commission (CSRC). The fund contract, prospectus, and product data summary have been publicly disclosed via the CSRC's fund electronic disclosure website (http://eid.csrc.gov.cn/fund) and the fund manager's website (www.yhfund.com.cn). CSRC registration does not indicate a substantive judgment or guarantee of the fund's investment value, market prospects, or returns, nor does it indicate that investing in the fund is risk-free.