On October 15, the S&P dividend ETF closed down 1.42%, with a turnover of 308.467 million yuan. Component stocks had mixed ups and downs. On the upward side, Liba shares led the way; on the downside, Hengyuan Coal and Electricity led the decline. Recently, “stock repurchase, increase holdings and refinancing” and “exchange facilitation” policies of financial institutions have been introduced, and high-dividend assets have once again become the focus of the market. Open Source Securities believes that the loan interest rate for commercial banks in the “stock repurchase, increase holdings and reloan” policy is expected to be around 2%. Taking coal companies as an example, most of the current dividend rates exceed 5%. Through two financial policies, listed companies can obtain stock holdings and repurchases at low interest rates, and financial institutions can invest in high-dividend assets with higher returns through low interest rates. Both can achieve “arbitrage benefits” to obtain higher return on investment. Judging from the current low interest rate environment where interest rate cuts stimulate the economy, the high dividends and sustainability of coal stocks are in line with capital allocation preferences.

On October 15, the S&P dividend ETF closed down 1.42%, with a turnover of 308.467 million yuan. Component stocks had mixed ups and downs. On the upward side, Liba shares led the way; on the downside, Hengyuan Coal and Electricity led the decline. Recently, “stock repurchase, increase holdings and refinancing” and “exchange facilitation” policies of financial institutions have been introduced, and high-dividend assets have once again become the focus of the market. Open Source Securities believes that the loan interest rate for commercial banks in the “stock repurchase, increase holdings and reloan” policy is expected to be around 2%. Taking coal companies as an example, most of the current dividend rates exceed 5%. Through two financial policies, listed companies can obtain stock holdings and repurchases at low interest rates, and financial institutions can invest in high-dividend assets with higher returns through low interest rates. Both can achieve “arbitrage benefits” to obtain higher return on investment. Judging from the current low interest rate environment where interest rate cuts stimulate the economy, the high dividends and sustainability of coal stocks are in line with capital allocation preferences.