HK Stock Concept Tracker | High-dividend stocks see a wave of positioning enthusiasm; dividend assets are expected to become one of the long-term investment mainlines (with concept stocks)

Title context: HK Stock Concept Tracker | High-dividend stocks see a wave of positioning enthusiasm; dividend assets are expected to become one of the long-term investment mainlines (with concept stocks) Text: Since the third quarter of 2026, A-share style rotation has been sharp. Tech growth has fluctuated at high levels, while dividend sectors such as banks and coal have bucked the trend and strengthened, with Industrial and Commercial Bank of China, China Construction Bank Corporation, and Bank Of China share prices successively hitting record highs. The latest position adjustments by public funds also confirm this trend: multiple funds increased their holdings in stocks with high-dividend characteristics such as banks in the third quarter. Dividend assets are undergoing a positioning upgrade from "defensive allocation" to "active offense," and high dividends are expected to become one of the long-term investment mainlines. Since October, banks, as representatives of dividend assets, have continued to strengthen, with multiple bank stocks hitting record highs for consecutive days. On October 19, Industrial and Commercial Bank of China's share price touched 8.65 yuan intraday, once again setting a record high, with its total market value once again surpassing CXMT Corporation to reclaim the title of A-share "market cap leader." As the sector with the largest size and most stable dividends among dividend assets. In the interim period of 2026, the total dividend amount of the banking industry reached 266.587 billion yuan, ranking first among all industries. 21 A-share banks disclosed interim dividend plans, with total proposed dividends exceeding 260 billion yuan, and the dividend payout ratio of the six major banks was uniformly lowered from 30% to 31%, with total proposed dividends exceeding 220 billion yuan. Relevant personnel stated that against the backdrop of a downward shift in the interest rate center and the continuation of "asset scarcity," dividend assets can still serve as one of the important bottom-position varieties in investment portfolios, and the dividend yield advantage will continue to attract allocation-type funds. In the short term, under the backdrop of Federal Reserve rate hikes, the tech growth sector, which is more sensitive to the interest rate environment, may be significantly affected and volatility may intensify, while the dividend sector has relative returns due to its defensive attributes. The holdings of public funds that have disclosed third-quarter reports confirm this point. As of the end of the third quarter, the equity investment proportion of Jinxin Smart China 2025 Mixed was 80.23%, down 8.47% from the end of the second quarter. The top ten heavyweight stocks were Industrial and Commercial Bank of China, BANKCOMM, CITIC BANK, Industrial Bank, China Mobile Limited, China Construction Bank Corporation, Bank Of China, Bank of Shanghai, Ping An Bank, and Shanghai Pudong Development Bank. The fund significantly increased its positions in five bank stocks in the third quarter, including Industrial and Commercial Bank of China, BANKCOMM, CITIC BANK, Industrial Bank, and Bank Of China, with shareholding quantities all doubling from the end of the second quarter. The A-share prices of Industrial and Commercial Bank of China, CITIC BANK, and Bank Of China have all recently hit record highs. "Compared with the second quarter, the portfolio increased allocations to other intelligent-related stocks with high-dividend characteristics such as telecom operators, and also increased allocations to some high-dividend stocks other than banks and insurance," the third-quarter report of Jinxin Smart China 2025 Mixed showed. Kong Xuebing, fund manager of Jinxin Steady Strategy Mixed, believes that market funds need to re-examine and differentiate the attribute differences between tech growth and manufacturing cycles, and structural divergence within the tech sector is inevitable. Short-term ultra-high gross margins obtained more from the overseas AI capital expenditure race and mature supply chain support may face cyclical volatility shocks and market repricing. Market funds' frenzied pursuit of short-term high-prosperity directions is expected to weaken, turning to embrace more sustainable growth, and the valuation-level differences between cyclicality and growth are expected to be reshaped. Currently, the yield on ten-year government bonds has fallen to a historical low of 1.6%-1.7%, while the dividend yield of the CSI Dividend Index remains at 3.8%-4%, and the spread of more than 2 percentage points has formed a strong "quasi-bond substitution" effect. Long-term funds such as insurance, social security, and pension funds continue to increase allocations to stable-dividend assets under the pressure of "asset scarcity." Huatai estimates that the insurance industry had allocated 2.1 trillion yuan of dividend stocks as of the first half of the year, and still has an under-allocation of about 1.9 trillion yuan in the future. At the same time, the market has recently fallen into volatility again, the tech sector has continued to adjust, and the attractiveness of dividend assets has become prominent. Taking the Dividend Low Volatility Index as an example, Wind data shows that as of October 9, the CSI Dividend Low Volatility Index had risen 0.47% since September, while the Shanghai Composite Index fell 4.33% over the same period and the CSI 300 Index fell 6.66%. Market analysts believe that the shift of funds to the dividend sector is mainly affected by rising U.S. Treasury yields suppressing growth stock valuations, combined with heavy profit-taking in the tech sector in the earlier period. Funds are flowing from high-level tech stocks to low-valuation dividend sectors, reflecting short-term risk aversion and style rebalancing needs. Sha Chuan, fund manager of Tianhong Fund, said that since the beginning of this year, the mainline of market investment has always revolved around tech growth, and the rally in the dividend sector mainly comes from funds' defensive demand after the sharp rise in the tech sector. In the long run, against the backdrop of population aging and gradual development, domestic interest rates may remain at a low level for a long time or even decline further. Dividend assets, due to relatively stable performance and dividend returns, may be favored by funds for the long term and are one of the better long-term investment mainline directions. Shenwan Hongyuan Group released a research report stating that 2026 is a year with certain fundamental support for banks, and it is expected that listed banks will continue the trend of "revenue improvement and steady profit growth" in their third-quarter reports. Coupled with favorable catalysts such as multiple banks implementing interim dividends in the fourth quarter and patient capital expected to return again, it is optimistic on banks. It continues to focus on high-quality city commercial banks and large state-owned banks with the strongest certainty of fundamental improvement, maintaining the judgment that "large state-owned banks will steadily raise the sector's valuation center, and high-quality city commercial banks will be the first to stand at 1x PB." China Merchants Fund stated that dividend assets are undergoing a positioning upgrade from "defensive allocation" to "active offense." During the October third-quarter report window, tech growth may see periodic repair, and the barbell strategy of "dividend bottom position + tech satellite" remains the current relatively balanced allocation approach. Related concept stocks Industrial and Commercial Bank of China (01398): Daiwa released a research report stating that it initiated coverage on Industrial and Commercial Bank of China with a "Hold" rating and an H-share target price of HK$7.8. The bank noted that Industrial and Commercial Bank of China is the world's largest bank by total assets and is consistently ranked as the most profitable financial institution, but its current valuation multiple of 0.55x 2026 forecast price-to-book has already reflected its funding advantages. China Construction Bank Corporation (00939): Daiwa released a research report stating that it initiated coverage on China Construction Bank Corporation with a "Buy" rating, a target price of HK$11.05, and views it as the top pick in the banking industry. The bank noted that China Construction Bank Corporation is China's second-largest bank by total assets, and driven by funding cost advantages and fee income contributions, its 2025 return on equity was 10.1%, ranking second among state-owned banks. BANKCOMM (03328): Announced 2026 interim results, with net operating income of 142.540 billion yuan, up 6.77% year on year; net profit (attributable to shareholders of the parent company) of 47.874 billion yuan, up 4.04% year on year; earnings per share of 0.52 yuan. Bank Of China (03988): Morgan Stanley released a research report stating that it gave Bank Of China an "Overweight" rating and expects Bank Of China to benefit from stabilizing net interest margins and resilient offshore profit margins, maintaining steady revenue and profit growth; and with its extensive global network and international business, it is expected to capture cross-border business growth and opportunities for Chinese enterprises going overseas. The bank noted that Bank Of China's expected dividend yield for 2026 is about 4.9%, which is attractive, and major insurance companies' shareholdings are relatively low, which may provide additional valuation support when institutional demand for high-dividend financial stocks rises.