CSI 300 index opens little changed at 3,786.39

CSI 300 index opens little changed at 3,786.39

The CSI 300 index opened at 3,786.39 on April 28, 2025, showing little change from the previous day. Despite market volatility, dividend-focused strategies are gaining significant traction, driven by the increasing popularity of low-cost ETFs and long-term capital funds.

In 2024, the A-share market achieved a historic milestone with total dividend payouts reaching RMB 2.4 trillion (US$ 338 billion) [1]. As of April 13, 1,156 listed companies had announced dividend plans amounting to RMB 1.13 trillion (US$ 160 billion). The dividend yield of the CSI 300 Index and CSI Dividend Index reached 3.5% and 6.3%, respectively, indicating strong cash distributions.

E Fund Management ("E Fund"), the largest mutual fund manager in China, is expanding its range of low-cost dividend ETFs. On April 28, E Fund will launch E Fund CSI Dividend Value ETF (Code: 563700), the first ETF tracking the CSI Dividend Value Index [1]. This move follows the success of E Fund's existing dividend ETFs, including E Fund CSI Dividend ETF (Code: 515180), E Fund CSI Dividend Low Volatility ETF (Code: 563020), and E Fund Hang Seng SCHK High Dividend Low Volatility ETF (Code: 159545).

These ETFs, which adopt the lowest management fee rate of 0.15% annually, are helping investors cost-effectively invest in high-dividend assets. The entry of annuity funds, public funds, and other medium- to long-term capital funds into the stock market has elevated the strategic importance of dividend-focused investments. Wealth management funds are increasingly favoring low-volatility dividend strategies, as evidenced by E Fund CSI Dividend Low Volatility ETF's significant holdings from wealth management funds, which collectively account for 9.23% of outstanding shares [1].

The growing interest in dividend-focused investments is particularly notable amidst trade tensions. Dividend indices such as the CSI Dividend Index and the CSI Dividend Low Volatility Index are gaining traction due to their focus on domestically oriented sectors with low trade sensitivity. These sectors have lower overseas revenue contributions, making them less sensitive to international trade dynamics.

E Fund Management, established in 2001, is a leading comprehensive mutual fund manager in China with over RMB 3.5 trillion (USD 497 billion) under management [1]. The company offers investment solutions to both onshore and offshore clients, helping clients achieve long-term sustainable investment performances.

References:
[1] https://www.prnewswire.com/news-releases/low-cost-etfs-and-long-term-capital-funds-drive-high-dividend-strategies-in-a-share-market-302437126.html