September has witnessed a notable shift in market dynamics, with A-share risk appetite moderating as investors increasingly pivot toward defensive strategies. Between September 1 and September 14, margin financing data reveals that 86 companies across the banking, transportation, and utilities sectors received increased margin buying, with 37 of them seeing boosts exceeding 5%. Among these, 13 companies boast dividend yields of no less than 3%, and six recorded margin buying increases of over 10%. This concentrated flow of margin capital into high-dividend assets signals a growing demand for more predictable, stable returns in the current environment.

The surge in interest for dividend-paying stocks is closely tied to evolving macroeconomic conditions both at home and abroad. This week marks a "super central bank week" globally, with the Federal Reserve, Bank of Japan, and Bank of England all set to hold monetary policy meetings. As of September 14, CME Group's FedWatch tool indicates an 86% probability of a 25-basis-point rate hike by the Fed this week, while expectations for a similar move by the Bank of Japan are also elevated. Should these rate hikes materialize or hawkish signals emerge, high-dividend assets—supported by their relatively stable payout profiles—could become a key destination for capital reallocation amid heightened market volatility.

On the domestic front, policymakers are stepping in to cushion the impact of tightening overseas liquidity. The People's Bank of China announced on September 10 that it would conduct overnight reverse repurchase operations from September 14 to September 17, marking the second consecutive month of such mid-month operations. This move aims to maintain a relatively stable liquidity environment for the banking system, providing a supportive backdrop for dividend-focused investments.

In this context, the Huatai-PineBridge "dividend family bucket"—a suite of products known for high yields and low valuations—emerges as a compelling channel for allocating to A-share high-dividend assets. As of the end of June 2026, the Huatai-PineBridge Dividend Low Volatility ETF (512890) and its feeder fund have attracted 153,500 and 1.4838 million holders, respectively, with increases of 50,000 and 12,300 from end-2025. Meanwhile, the Huatai-PineBridge Dividend ETF (510880) and the Huatai-PineBridge Stock Connect Dividend ETF (513530) count 422,900 and 28,900 holders, respectively, according to fund mid-year reports.

The favorable dividend environment further bolsters the case for high-dividend assets, providing sustained cash flow support and a logical basis for valuation recovery. September marks the peak season for interim dividends across both A-shares and Hong Kong-listed stocks. As of September 14, 862 A-share companies and 287 Hong Kong-listed firms have declared 2026 interim cash dividends, totaling 720.406 billion yuan and 380.241 billion yuan, respectively. This has pushed the dividend yields of the indices tracked by the Huatai-PineBridge Dividend Low Volatility ETF (512890)—the CSI Dividend Low Volatility Index—and the Huatai-PineBridge Stock Connect Dividend Low Volatility ETF (520890)—the Hang Seng Stock Connect Dividend Low Volatility Index—to 4.27% and 6.02%, respectively. The significant spread over the 10-year government bond yield of 1.69% further enhances the appeal of high-dividend sectors, though investors should carefully weigh the distinct risk profiles of bonds versus equities.

The "dividend family bucket" is a flagship offering from Huatai-PineBridge Fund Management, one of China's pioneering ETF managers with nearly two decades of experience in dividend-themed index investing. The suite includes the Huatai-PineBridge Dividend ETF (510880), the first dividend-themed index fund in the A-share market, with 422,900 holders as of mid-2026. The Huatai-PineBridge Dividend Low Volatility ETF (512890), along with its feeder fund, boasts 1.4838 million holders, while the Huatai-PineBridge Central SOE Dividend ETF (561580) is the first "central SOE + dividend" dual-theme ETF. For Hong Kong exposure, the Huatai-PineBridge Stock Connect Dividend ETF (513530) utilizes a QDII structure to potentially mitigate dividend tax burdens, while the Huatai-PineBridge Stock Connect Dividend Low Volatility ETF (520890) incorporates a low-volatility factor for added defensiveness in the more volatile HK market. The Huatai-PineBridge Dividend Quality ETF (561630) applies a "dividend + quality" dual-factor strategy to identify fundamentally sound, high-yield stocks with stronger growth characteristics, and the Huatai-PineBridge Dividend Low Volatility 50 ETF (561450) focuses on quality blue-chips using the dual-factor approach. These products are all rated R3 in risk level, with intermediary fees varying by channel.

Investors should note that fund investments carry risks, and past performance does not guarantee future results. It is essential to review fund contracts, prospectuses, and other legal documents carefully, and to ensure that any investment aligns with your risk tolerance and suitability profile. For funds investing in overseas markets, additional risks such as currency fluctuations and foreign market volatility apply. Index ownership and accuracy are the responsibility of the respective index providers, including Hang Seng Indexes, S&P Dow Jones Indices, and CSI, none of which guarantee against errors or assume liability for any inaccuracies.