Green bonds | 2.5% interest is not attractive enough? Inventory of high dividend stocks and ETF which Li Huifen recommends

The government recently announced the allotment results of the first batch of green retail bonds (Green Bond, 4252).

However, the price of green bonds on the first day of listing continued to be lower than the issue price by 100 yuan. The highest intraday price was only 99.95 yuan, and the lowest was 99.55 yuan. Foot" 225 yuan.

Although the green retail bond has a guaranteed minimum interest rate of 2.5%, the bond price has fallen below the par value of RMB 100, reflecting that under the environment of interest rate hikes, even near-risk-free coupon bonds cannot attract institutional investors to collect.

Seeing the unsatisfactory performance on the first day, many investors may prefer to lose money, especially margin investors, to cash out funds and make arrangements.

Today's green bond turnover reached 1.286 billion yuan, excluding major dark market and OTC transactions, and the issuance rate was 20 billion yuan, with a turnover rate of 6%.

Inventory of the three high-yield ETFs

After the funds are cashed out from green bonds, what high-interest assets can they pursue?

At present, there are many high-yield ETF options on the market, such as GX Hang Seng High Dividend ETF (3110), the latest dividend yield is 7%; Ping An Hong Kong High Dividend ETF (3070), the latest dividend yield is 5.56%; ChinaAMC Hong Kong Banking ETF (3143), with a dividend yield of 4.49%.

Investors may also refer to some of these high-yield ETFs or indexes as alternatives to some individual high-quality high-yield stocks.

Among them, CNOOC (0883), which holds the highest share of Ping An Hong Kong High Dividend ETF, has paid a special dividend of RMB 1.18 this year, with a dividend yield of 13.6% for the year.

If you are worried about the downside risks of the Chinese economy and want to avoid Chinese stocks, you can also consider high dividend stocks in Hong Kong, such as PCCW (0008), the company will distribute 0.0936 yuan in the middle of this year; The rate is also as high as 8.7%.

OOCL made nearly seven times its profits last year, and paid dividends to shareholders with a dividend yield of 25%.

(file picture)

OOCL Dividend Yield of 25%

Entering the ex-net peak period, investors may be able to pay attention to some high-dividend stocks that are about to be ex-divided.

Among them, Orient Overseas (0316), which earned nearly 7 times last year, paid 60.138 yuan for the whole year, and the dividend rate was as high as 25%.

Although a sharp increase in profit this year is not common, according to Bloomberg’s comprehensive brokerage forecast, it is expected that the group’s dividend will still be as high as US$6.223 in 2022, with a forecast dividend rate of 19.8%.

Li Huifen, executive director of Global Group Securities, believes that although green bonds fell below the level of 100 yuan today, it is believed that most of the selling orders are from margin investors. Investors who subscribe in cash are not in a hurry to sell, and may hold until interest is paid. Even until the bond price rises to 103 to 105 yuan level before selling.

Li Huifen added that the reason why green bonds "break" is not only because of the high interest rates of US debt, but also because the demand is not what it used to be.

In the early days of the government's issuance of iBonds, many immigrant investors needed to deposit more than 10 million assets in Hong Kong. In disguise, iBonds with guaranteed returns became attractive, thus attracting many institutions to buy them and sell them to immigrant customers.

Nowadays, there are very few investment immigrants, so even if the guaranteed minimum interest rate of green bonds reaches 2.5%, it will fall below the issue price.

China Mobile (0941) mainly faces the domestic market, and believes that its future performance will not be affected by Sino-US relations.

﹙ Profile picture ﹚

Li Huifen: High-dividend stocks are selected for mobile

Regarding the return of funds from green bonds to the market, Li Huifen suggested that high-yield stocks are still the first choice under the current unstable market conditions.

She mentioned that since Sino-US relations are still unclear and uncertainties are difficult to predict, shares related to exports, logistics, shipping, etc. may not be safe. Even though OOCL has a higher interest rate, it is not her first choice.

On the contrary, China Mobile (0941) is dominated by the domestic market and believes that its future performance will not be affected by Sino-US relations.

As for ETFs, although they can share risks and prevent investors from betting on a single stock, Li Huifen reminded that ETFs always have management fees, and the future price performance will have to pay the same fees, and the transaction may be sparse and the bid-ask spread may be large, so it is recommended to choose a higher rate of return. With high ETFs, investors have more room to face downside risks.