Hang Seng Indexes Renames Hong Kong Stock Connect High-Dividend Low-Volatility Index Effective September 14, 2026

Hang Seng Indexes will officially rename the Hang Seng Stock Connect High Dividend Low Volatility Index as the Hang Seng Stock Connect Dividend Low Volatility Index on September 14, 2026, and the Hang Seng Hong Kong Stock Connect High Dividend Low Volatility ETF China Merchants (520550) and its feeder fund will also change their full names on the same day, while fund codes and trading abbreviations remain unchanged, according to Jiemian News. The index provider announced the name change and methodology adjustment in August. The revised methodology adds a liquidity discount factor: if a new constituent's average daily turnover over the three months before the review data cutoff is below HK$50 million, its net dividend yield will be multiplied by 0.5. Jiemian News reported that the change is intended to reduce the risk of overweighting illiquid stocks and lower rebalancing and execution costs. As of September 11, the ETF's units had risen for four consecutive months to 1.155 billion, a record high since inception. The benchmark index's latest dividend yield was about 5.69%, and its price-to-book ratio was 0.65 times. Its total return version has gained 72.2% over the past three years, compared with 37.07% for the Hang Seng Index and 5.81% for the Hang Seng Tech Index. The ETF has paid cash dividends 16 times since launch, and its 17th distribution will have record date on September 14, with a payout of RMB 0.04 per 10 units. Its management fee is 0.15% a year and custody fee is 0.05% a year.