In recent weeks, a significant downward trend in long-term interest rates coupled with increased demand for hedging as the year draws to a close has revitalized the performance of dividend assetsThis resurgence is marked by a remarkable recovery seen in the China Securities Dividend Low-Volatility Index, which witnessed a notable rebound with over a 5% increase from November 18 to December 18. Simultaneously, the market for dividend-themed ETFs has flourished, attracting nearly 20 billion yuan in net inflows in just the past month, pushing the total scale of this segment to surpass the 100 billion yuan mark as of December 17.

As the Chinese stock market displays fluctuations and variations, high-dividend assets remain robust, prompting an investment frenzy surrounding dividend opportunitiesAccording to data by Wind, as of December 17, the market boasted 58 different dividend-themed ETFs, collectively reaching a whopping scale of 105.363 billion yuan

This not only constitutes a record-breaking height but also signifies a groundbreaking threshold beyond 100 billionNotably, the top three funds include the Huatai-PB Dividend ETF, Huatai-PB Dividend Low-Volatility ETF, and the E Fund Dividend ETF, with sizes reaching 21.689 billion yuan, 11.483 billion yuan, and 7.722 billion yuan, respectivelyMeanwhile, several other funds, such as the Invesco Great Wall Dividend Low-Volatility 100 ETF and the CMBI Dividend ETF, have also crossed the 5 billion yuan milestone.

It is particularly interesting to note how the scale of these dividend-themed ETFs has surged significantly over the past monthFurther data from Wind indicates that these ETFs have experienced an astounding net inflow of nearly 20 billion yuan, with funds tracking the China Securities Dividend Low-Volatility Index witnessing growth of almost 5 billion yuan alone during the same time frame

• Dow Records Ten Consecutive Declines
• Dual Approach to Enhance Benefits
• Dividends or Growth? Funds Diverge in Year-End Rally
• Federal Reserve Eases Expectations on Rate Cuts
• Fed Cuts Rates 100 Basis Points This Year

More concretely, the top gaining funds include Huatai-PB Dividend ETF, which raised 3.911 billion yuan, followed closely by Huatai-PB Dividend Low-Volatility ETF and E Fund Dividend ETF, accumulating 3.854 billion yuan and 1.707 billion yuan respectively.

Examining the largest fund, Huatai-PB Dividend ETF, it has shown remarkable vitality and an increase in volume since December beganThe fund has recorded a continuous inflow over the past twelve trading days, culminating in a historic high of 21.689 billion yuan on December 17.

This rise in dividend asset appeal can be attributed to the favorable low-interest environment that has been prevailingThe China Securities Dividend Low-Volatility Index has risen over 18% throughout the year, with a notable increase of over 4% occurring just in DecemberMany fund companies have pointed out that, in the short term, the end-of-year and beginning-of-year seasonal demand for hedging has contributed to the influx of funds into dividend assets

In the medium to long term, a prevailing low-interest backdrop is likely to elevate the relative attraction of high-dividend assetsPension funds and insurance companies, typically long-term investors with a low risk appetite, are expected to increase their allocations towards dividend products.

According to analysts from Southern Fund’s index investment department, there is an inherent seasonal effect that seems to play a role in the dividend marketReviewing data from 2009 to the present, they observe that the probability of achieving excess monthly returns from the Dividend Low-Volatility 50 Index compared to the entire market index peaks in December and January, suggesting that benefits from risk aversion and seasonal fund inflows could continue to advance the dividend themesFurthermore, the overall low-interest landscape has amplified the allure of dividend assets, as evidenced by the recent phenomenon wherein the yield on 10-year government bonds has dipped below 1%, followed by the 30-year bond yield plunging under 2% on December 16. The dividend yields of both the China Securities Dividend Index and the Low-Volatility Index stand at particularly enticing rates of 5.26% and 5.15%, showcasing exceptional value.

This persistent decline in long-term interest rates has intensified an 'asset scarcity' environment, compelling insurance companies to gradually adjust their portfolios to consist of equity assets to enhance their overall returns

In light of this scenario, the certainty associated with dividend income and the foundational solidity of dividend assets aligns seamlessly with the long-term stability and predictable return requirements sought after by insurance capitalThe primary objective of such patient capital is to aim for consistent long-term investment returns, making dividend assets an optimal choice due to their characteristics of lower volatility and predictable yield.

Moreover, the trend of allocating more capital into equity assets, particularly dividend-oriented ones, has begun to manifest within the insurance sectorWind's data suggests that since the beginning of this year, insurance funds have significantly increased their stakes in A-shares and H-shares, having made over 17 notable purchases targeting companies primarily within high-dividend sectors such as utilities, environmental protection, and banking.

Additionally, a recent policy shift recognizes index funds within the personal pension investment catalog, which includes several dividend-themed funds like Huatai-PB Dividend Low-Volatility ETF, the Fortune China Securities Dividend Index Enhanced ETF, and the E Fund China Securities Dividend ETF