With the conclusion of the 2026 semi-annual report season for A-share listed banks, a wave of interim dividend proposals has been unveiled concurrently. As of September 10, 20 out of 42 A-share listed banks have disclosed or implemented their 2026 interim profit distribution plans, with a combined proposed payout of 266.114 billion yuan. Notably, the six state-owned major banks account for over 80% of the total dividends and have collectively raised their proposed payout ratios to 31%. Sustained cash dividends not only serve as a vital means for the banking sector to reward shareholders but also provide a solid fundamental underpinning for the dividend returns of high-dividend-yield assets. Against the backdrop of a prolonged low-interest-rate environment and heightened demand for stable returns, the normalization and predictability of bank dividends may well become the core logic driving mid-to-long-term capital allocation toward such assets. (Source: China Securities Journal article "20 Listed Banks Propose Interim Dividends Exceeding 260 Billion Yuan; Six Major Banks Jointly Raise Payout Ratios," published on September 11, 2026)

The mid-year dividend surge in the banking sector stands in stark contrast to the current low-interest-rate landscape. Wind data reveals that since August 14, the 10-year government bond yield has officially broken below the 1.70% threshold, currently resting at 1.69%. This creates a significant spread when compared to the dividend yields of the indices tracked by the Huatai-PineBridge "Dividend Family," including the Hang Seng Stock Connect Hong Kong Dividend Low Volatility Index underlying HK Stock Connect Dividend Low Volatility ETF Huatai-PineBridge (520890) at 6.08%, the Hang Seng Stock Connect High Dividend (CNY) Index underlying HK Stock Connect Dividend ETF Huatai-PineBridge (513530) at 5.00%, the Dividend Low Volatility Index underlying Dividend Low Volatility ETF Huatai-PineBridge (512890) at 4.33%, and the Dividend Index underlying Dividend ETF Huatai-PineBridge (510880) at 3.94%. This disparity is poised to continually strengthen the appeal of these assets to mid-to-long-term capital. (Data as of September 15, 2026. Please note that investing in government bonds and stocks entails different risk profiles, and investors should comprehensively evaluate investment risks when making decisions.)

Regarding the latest 2026 semi-annual reports disclosed by the banking industry, a research report from CITIC Securities suggests that overall net interest margin performance is encouraging, asset quality remains stable, and revenue is broadly optimistic albeit with some divergence, with profit growth continuing its recovery trajectory. Meanwhile, certain banks have raised their dividend payout ratios to boost shareholder returns, which could benefit long-term investors. A review of capital flows indicates sustained inflows of long-term funds into the banking sector, primarily driven by low-risk-appetite investors such as insurance funds. Their willingness to allocate to both A-share and H-share banks has persisted, with increased allocation efforts even as passive funds flowed out of A-share banks during the first half of the year. (Source: CITIC Securities report "Banking | How to Interpret Changes in Bank Operating Conditions? - 2026 Semi-Annual Report Review," published on September 15, 2026)

This trend could be further reinforced by the introduction of incremental policies. On August 21, the National Financial Regulatory Administration officially issued the "Measures for the Administration of Assets and Liabilities of Insurance Companies," requiring life insurance companies to maintain a net investment income coverage ratio of no less than 100%. As the gap between insurers' net investment yields and their liability guarantee costs faces sustained narrowing pressure, this hard constraint is likely to compel insurers to step up their allocation to high-dividend-yield assets. According to institutional estimates, under the low-interest-rate scenario, life insurance companies theoretically need to increase their allocation to high-dividend-yield assets by approximately 1.41 trillion yuan, with this allocation likely to be gradually completed over the next two to three years. (Data source: Guojin Securities report "Insurance Industry Research: Strengthening Income-Cost Matching, Demand for High-Dividend Asset Allocation Expected to Rise," published on August 23, 2026. Institutional projections are for reference only and do not represent actual conditions, nor do they serve as a guarantee or commitment of fund performance. Investors should pay attention to related investment risks.)

Against this backdrop, the Huatai-PineBridge "Dividend Family," characterized by relatively high dividend yields and low valuations, is well-positioned to serve as a key vehicle for channeling capital into A-share high-dividend assets. Wind data shows that Dividend Low Volatility ETF Huatai-PineBridge (512890)—the market's first dividend low-volatility-themed ETF—along with HK Stock Connect Dividend ETF Huatai-PineBridge (513530) and HK Stock Connect Dividend Low Volatility ETF Huatai-PineBridge (520890), which focus on Hong Kong high-dividend assets, have seen active trading with daily turnover expanding. According to the funds' interim reports, as of June 30, 2026, Dividend Low Volatility ETF Huatai-PineBridge (512890) and its feeder fund, popular products within the dividend ETF category, had 153,500 and 1,483,800 holder accounts respectively, marking increases of 50,000 and 12,300 accounts compared to December 31, 2025. (Data sources: Wind and fund periodic reports. Turnover for Dividend Low Volatility ETF Huatai-PineBridge, HK Stock Connect Dividend ETF Huatai-PineBridge, and HK Stock Connect Dividend Low Volatility ETF Huatai-PineBridge stood at 524 million yuan, 235 million yuan, and 5 million yuan as of September 14, 2026, and 650 million yuan, 311 million yuan, and 8 million yuan as of September 15, 2026.)

It is understood that the Huatai-PineBridge "Dividend Family" is launched by Huatai-PineBridge Fund Management, one of China's first ETF managers, which has accumulated nearly two decades of management expertise in dividend-themed index investing. (The first dividend ETF, Dividend ETF Huatai-PineBridge, was established on November 17, 2006.) Among them, Dividend ETF Huatai-PineBridge (510880) stands as the first dividend-themed index fund on the A-share market, boasting 422,900 holder accounts as of mid-2026; Dividend Low Volatility ETF Huatai-PineBridge (512890) and its feeder fund have 1,483,800 holder accounts; Central SOE Dividend ETF Huatai-PineBridge (561580) is the first "Central SOE + Dividend" dual-themed ETF on the A-share market; HK Stock Connect Dividend ETF Huatai-PineBridge (513530) and HK Stock Connect Dividend Low Volatility ETF Huatai-PineBridge (520890) focus on Hong Kong high-dividend assets, with the former adopting a QDII structure that offers certain advantages regarding Hong Kong dividend tax, while the latter incorporates a low-volatility factor, potentially enhancing defensive characteristics in the more volatile Hong Kong market; Dividend Quality ETF Huatai-PineBridge (561630) employs a "dividend + quality" dual-factor stock selection strategy, aiming to identify high-dividend targets with solid fundamentals and superior profitability, with a more pronounced growth tilt; and Dividend Low Volatility 50 ETF Huatai-PineBridge (561450) builds on the "dividend + low volatility" dual factors by concentrating on high-quality blue-chip stocks. (Holder account data sourced from fund periodic reports, as of June 30, 2026. Establishment dates for Dividend ETF Huatai-PineBridge, Dividend Low Volatility ETF Huatai-PineBridge, and Central SOE Dividend ETF Huatai-PineBridge are November 17, 2006, December 19, 2018, and May 18, 2023, respectively.)

Note: The "Dividend Family" refers to Huatai-PineBridge's suite of funds, including Dividend ETF Huatai-PineBridge, Dividend Low Volatility ETF Huatai-PineBridge, HK Stock Connect Dividend ETF Huatai-PineBridge, Central SOE Dividend ETF Huatai-PineBridge, HK Stock Connect Dividend Low Volatility ETF Huatai-PineBridge, Dividend Quality ETF Huatai-PineBridge, and Dividend Low Volatility 50 ETF Huatai-PineBridge. All products carry a risk rating of R3. Ratings at distribution channels are subject to the respective institutions' assessments, which may vary across sellers based on investor suitability regulations. Fee notes: When subscribing to shares of Dividend Low Volatility 50 ETF Huatai-PineBridge or Dividend Quality ETF Huatai-PineBridge, the subscribing broker-dealer may charge a commission of no more than 0.30%; when redeeming shares of these funds, the redeeming broker-dealer may charge a commission of no more than 0.50%, inclusive of fees levied by stock exchanges and registration and settlement institutions. For subscriptions or redemptions of the other products, the appointed broker-dealer may charge a commission of no more than 0.5%, inclusive of fees charged by stock exchanges and registration institutions. These details are excerpted from the funds' legal documents, as of September 15, 2026. Transaction commissions in the secondary market follow the standards set by the investor's brokerage firm, with stamp duty exempted. Risk disclosure: Funds carry risks; investment requires caution. Before purchasing any fund product, please review the relevant investor suitability management regulations, complete a risk assessment in advance, and buy fund products that match your own risk tolerance. Past performance does not predict future returns, and the performance of other funds managed by the fund manager does not constitute a guarantee of a fund's performance. Fund investing involves risks; please carefully read the fund contract, prospectus, and product summary to understand the specific details of the fund. HK Stock Connect Dividend ETF Huatai-PineBridge and HK Stock Connect Dividend Low Volatility ETF Huatai-PineBridge may invest in overseas securities markets and, in addition to general investment risks similar to domestic securities investment funds, will face special risks such as currency risk and overseas market risk. The Hang Seng Stock Connect Hong Kong Dividend Low Volatility Index is compiled and published by Hang Seng Indexes Company, which owns its intellectual property rights. Hang Seng Indexes Company will take all necessary measures to ensure the accuracy of the index but makes no warranty in this regard and accepts no liability for any errors in the index. The S&P China A-Share LargeCap Dividend Low Volatility 50 Index is compiled and calculated by S&P Dow Jones Indices LLC ("S&P"), which owns its intellectual property rights. S&P will take all necessary measures to ensure the accuracy of the index but makes no warranty in this regard and accepts no liability for any errors in the index. Other indices are compiled and published by CSI Index Company, which owns their intellectual property rights. CSI will take all necessary measures to ensure the accuracy of the indices but makes no warranty in this regard and accepts no liability for any errors in the indices. MACD golden cross signals are forming—these stocks are showing upward momentum!