First Plus Asset Management says quant dividend strategies gain appeal as China bond yields slide to 1.7%
FXI•Bond yields and valuation backdrop
It cited a 1.7% yield on 10-year Chinese government bonds, with bank wealth-management products averaging under 1.4% returns over the past year.
The analysis noted sharp A-share divergence, with the STAR 50 Index up more than 50% at one point while dividend stocks consolidated.
It pointed to cheaper dividend valuations, with the CSI Dividend Low Volatility Index at 0.79 price-to-book, near the 43rd percentile of 10 years.
Policy support seen underpinning dividend assets
It expects policy support, expanding cash-flow-rich issuers, insurers, and pensions to underpin dividend assets across A-shares, Hong Kong, Taiwan.
Quant dividend strategies gain appeal amid low yields
First Plus Asset Management flagged rising demand for quantitative dividend strategies as volatility increases across global assets amid low yields in China.
