CITIC Securities Recommends Focusing on Dividend-Paying Sectors Such as Banks, Utilities, Telecom, and Property Management

Summary

CITIC Securities research report notes that since late July, government bond yields in developed overseas markets have surged, mainly due to rising inflation expectations, sovereign credit concerns, and repricing of central bank policies. In the short term, rising interest rates suppress high-valuation equities and intensify concerns in US stocks about hyperscaler capital expenditure returns, while the widening China-US yield spread may increase southbound funds' willingness to allocate to high-dividend assets in Hong Kong stocks.