Premium red-chip Hix listed in Hong Kong boast stable and generous dividends, making them highly attractive to investors seeking stable cash flows and consistent returns. As of June 11, 2024, mainland inflows for the year stood at HKD 321.3 billion, representing a remarkable 101% increase over the full-year net inflow in 2023. The ShanghaiHong Kong Stock Connect saw a nearly twofold surge in net inflows for the year compared to 2023. The major state-owned enterprises (SOEs) set to list in Hong Kong in 2024 have been enthusiastically embraced by the “northbound flow” of mainland investors. Among the top three HK-listed stocks targeted by this inflow in 2024 are Bank of China ( 03988.HK), China Mobile ( 00941.HK), and CNOOC ( 00883.HK).

Bank of China

Since the start of 2024, Bank of China (stock code: 03988.HK) has seen continuous share price appreciation, with a year-to-date cumulative gain of 28% as of June 21st, outperforming the Hang Seng Index. On June 19th, the Hong Kong market experienced a significant inflow of mainland capital, net buying a total of HKD 23.68 billion. The Mainland-Hong Kong Connect (Shanghai) channel saw net purchases of HKD 8.34 billion, while Mainland-Hong Kong Connect (Shenzhen) accounted for HKD 15.34 billion. Among these, Bank of China received a net inflow of HKD 5.77 billion from the mainland investors. This buying activity is linked to the State New Investment’s acquisition of the CSNG H-Shares ETF, indicating sustained optimism for banking stocks, particularly those of the central banks. Bank of China’s latest dividend details are as follows: an end-of-year cash dividend of CNY 2.364 per 10 shares, amounting to a total payout of HKD 75.30 billion. The dividend announcement was made on March 28, 2024, with the ex-dividend date on July 8, 2024, and shareholders are expected to receive the dividends by August 5, 2024.

(Source:uSMART HK)

China Mobile

Since the start of 2024, China Mobile (stock code: 0094LHK) has seen its stock price consistently rise, outperforming the Hang Seng Index by 19% year to date as of June 21st. Recently, three fund companies - Southern, Guangfa, and Invesco-Great Wall

launched the CSOP New H-Shanghai Central Enterprise Dividend ETF, which officially began distribution. This product, following the Central Enterprise Shareholder Returns, Central Enterprise Technological Leadership, and Central Enterprise Modem Energy ETFs, adds another crucial theme to the CSOP 1+N index system, focusing on high-dividend-paying Central Enterprises listed on the Hong Kong Stock Connect. Designed for long-term allocation, it specifically targets enterprises in key sectors such as energy, telecommunications services, manufacturing, utilities, and healthcare. The CSOP New H-Shanghai Central Enterprise Dividend Index encompasses leading Central Enterprises like CNOOC, China Petrochemical, China Shenhua, China Oil & Gas, and China Mobile, providing a comprehensive representation of the overall performance of high-dividend yield Central Enterprises listed in Hong Kong. It showcases the industrial structure characteristics and long-term investment value of these enterprises listed in the city. China Mobile (00941)'s latest dividend announcement details are as follows: A final dividend of HKD2.4 per share will be paid. The dividend payment date is scheduled for 2024-06-26.

(Source:uSMART HK)

China Ocean Oil Corporation

Since the start of 2024, shares in China Ocean Oil (stock code: 00883.HK) have maintained a strong upward trajectory, with year-to-date gains reaching 77% as of June 21st. CNOOC announced on June 20 that its first domestically developed offshore oil and gas well completion factory, the “Intelligent Factory,” has been commissioned in Tianjin. This milestone signifies the full adoption of automation in China’s high-end marine well completion tool manufacturing industry, with significant implications for enhancing productivity in complex reservoirs, shortening field development timelines, and extending the life of oil and gas fields. In its announced 2024 Operating Strategy in January, China Oceanic Oil Corporation clearly stated that the fullyear dividend payout ratio for 2024 is expected to be no less than 40%; further, the absolute value of dividends for the 2022-2024 period is projected to remain at a minimum of HKD 0.70 per share (inclusive of tax), regardless of the company’s operational performance. China Ocean Oil (00883)'s latest dividend announcement is as follows: A final dividend of HKD0.66 per share will be paid. The dividend payment date is scheduled for 2024-07-12.

(Source:uSMART HK)