With the arrival of the annual report disclosure season, cash dividends and share buybacks in the A-share market are frequently staged, bringing rich "red envelopes" to investors. According to data from the China Securities Journal, as of 18:00 on April 22, a total of 2,527 A-share listed companies have disclosed their 2023 annual reports, of which 1,941 listed companies plan to implement cash dividends in 2023, accounting for about eighty percent of the number of listed companies that have disclosed annual reports. At the same time, since the beginning of this year, the scale of share repurchases has exceeded 100 billion.
The enthusiasm for cash dividends in the A-share market continues to rise. About eighty percent of listed companies have announced cash dividend plans for 2023, and hundreds of them plan to distribute cash dividends of more than 10 yuan (before tax) for every 10 shares.
It is worth mentioning that some companies that have recently been listed have also shown their determination to pay high dividends.
In addition to the increase in amount, some companies have also increased the frequency of dividends. For example, the frequency of dividends is adjusted from semi-annual to quarterly, which shows a high degree of sincerity in returning to investors.
Since the beginning of this year, share repurchase activities have also shown an active trend. As of 18:00 on April 22, 1,380 companies have entered the implementation stage of share repurchase, with a total repurchase amount of 69.4 billion yuan, far exceeding the repurchase amount of 20.7 billion yuan in the same period last year.
By reducing the outstanding share capital and improving earnings per share and return on shareholders' equity, write-off buybacks are expected to boost the stock price in the short term.
The new "National Nine Articles" policy has issued a number of measures to regulate and guide dividends, and emphasized the stability and sustainability of enhancing dividends. In addition, the Shanghai and Shenzhen stock exchanges have also issued new rules to solicit comments, including companies that have not paid dividends for many years or have a low dividend ratio into the ST situation. This series of measures is conducive to further enhancing the willingness of listed companies to pay dividends and increasing the corresponding dividend ratio.
Catalyzed by multiple positives, as an investor, the most important thing now is to strengthen investment confidence in A-shares.
In terms of configuration, it is still possible to adopt a dumbbell configuration of "bonus + growth".
Taking Growth as an example, the index is a typical growth style index. Current valuation levels are almost at the lowest quantile of nearly 10.
Currently, it is possible to participate in the index through the ChiNext Momentum Growth ETF and the Feeder Fund.
ChiNext Momentum Growth ETF (fund code: 159967) is an investment product tracking the ChiNext Momentum Growth Index, with the following investment value highlights:
1. Combination of growth and momentum: The ETF uses the Smart Beta strategy to combine growth factors and momentum factors to screen out ChiNext listed companies with good growth ability and momentum effect, in order to obtain returns that exceed traditional market capitalization-weighted indexes.
2. High-quality industry distribution: The constituent stocks of the GEM Momentum Growth Index are mainly concentrated in scientific and technological innovation industries such as power equipment and new energy, computers, pharmaceuticals, and electronics, which are in line with the current and future economic development direction and have great growth potential.
3. Historical performance: According to historical data, the ChiNext Momentum Growth Index has performed well in terms of cumulative growth and annualized return over multiple years, showing better resilience and profitability than other broad-based indices.
4. High R&D investment: Constituent companies generally have high R&D investment, which is especially important in technology and innovation-driven industries, which helps to drive continuous innovation and long-term growth.
5. High market activity: ChinaAMC ChiNext Momentum Growth ETF maintains a high level of activity and trading volume in the secondary market, providing investors with good liquidity.
6. Lower management fees: The ETF has a lower management fee rate than active funds, reducing the holding cost for investors.
7. Policy support: As an important part of China's capital market, GEM is strongly supported by policies, especially under the innovation-driven development strategy, GEM companies are expected to gain more development opportunities.
8. Economic Cycle and Market Style: In the current macro environment of economic downturn and monetary easing, growth sectors may generate excess returns, and the ChiNext Momentum Growth ETF focuses on this sector.
9. Improving investor structure: As the investor structure improves, the market's preference for growth and momentum styles is likely to increase, which could be positive for ChiNext Momentum Growth ETFs.
10. Risk control: As an investment tool for a basket of stocks, ETFs can effectively diversify the investment risk of a single stock, while the Smart Beta strategy helps to control investment risks through a regular investment method.
When considering investing in ChiNext Momentum Growth ETF, investors should fully understand its characteristics, risks and market dynamics, and make decisions based on their own investment objectives and risk tolerance. The market is risky, and investors need to be cautious.
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$ChinaAMC ChiNext Growth ETF Connect A(OTCFUND|007474)$
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