US-Iran tensions flare up again on Hang Seng Index futures expiry day; Hang Seng plunges 322 points. Tech stocks under pressure—high-dividend stocks worth watching: ChinaAMC Asia High Dividend ETF

US-Iran tensions sharply escalated as US forces launched attacks on Iran, prompting an immediate surge in oil prices. On the same day, Federal Reserve Governor Cook issued a hawkish warning, stating inflation is moving in the wrong direction and that she stands ready to support rate hikes if necessary. Hit by these dual headwinds, global investor sentiment cooled rapidly. Coinciding with the Hang Seng Index futures expiry day, market volatility intensified. The Hang Seng Index opened lower and losses widened throughout the session, at one point dropping over 600 points to an intraday low of 24,727—the first time in nearly two months it breached the 25,000 mark. More than 6,000 call warrants were knocked out. Losses narrowed slightly toward the close, ending the day at 25,006, down 322 points or 1.3%, marking its third consecutive decline, with total turnover reaching HK$356.3 billion. The Hang Seng China Enterprises Index closed at 8,364, down 98 points or 1.2%. The Hang Seng Tech Index ended at 4,888, down 18 points or 0.4%. Southbound capital recorded a net inflow of RMB 7.6 billion.

Internet and software stocks continue to face pressure from rising costs driven by the AI commercialization wave, with the sector under sustained selling pressure. Meituan (3690) $MEITUAN-W (03690.HK)$ denied rumors of layoffs, but the market remained unconvinced, sending its share price plunging HK$4.4 or 5.66% to close at HK$73.3—its sixth straight day of declines; Tencent (0700) $TENCENT (00700.HK)$ fell HK$9.4 or 2.16% to close at HK$425; Alibaba (9988) $BABA-W (09988.HK)$ fell HK$2.50 or 2.01%, closing at HK$121.80; Baidu (9888) $BIDU-SW (09888.HK)$ fell HK$2.60 or 2.03%, closing at HK$125.60; NetEase (9999) $NTES-S (09999.HK)$ fell 1.38%, closing at HK$192.70; Kuaishou (1024) $KUAISHOU-W (01024.HK)$ fell HK$0.40 or 0.88% after earnings, closing at HK$44.88.

The biotech sector was also dragged down by capital rotation; Hansoh Pharma (3692) $HANSOH PHARMA (03692.HK)$ plunged HK$2.40 or 7.1%, closing at HK$31.40, the worst-performing blue chip of the day; Innovent Bio (1801) $INNOVENT BIO (01801.HK)$ dropped HK$4.10 or 5.19%, closing at HK$74.85; Wuxi Bio (2269) $WUXI BIO (02269.HK)$ fell HK$1.30 or 3.86%, closing at HK$32.38; Sino Biopharm (1177) $SBP GROUP (01177.HK)$ fell HK$0.19 or 3.8%, closing at HK$4.81; BeiGene (6160) $BEONE MEDICINES (06160.HK)$ fell HK$5.50 or 3.05%, closing at HK$175.10.

The chip sector continued to hold up the market on its own, as Changxin Technology's IPO on the STAR Market was approved by the listing committee meeting, expected to become the largest A-share IPO this year, sparking another across-the-board rally in memory-related stocks. Hua Hong Semiconductor (1347) $HUA HONG GRACE (01347.HK)$ surged HK$17.6 or 11.55%, closing at HK$170, hitting a record high; SMIC (0981) $SMIC (00981.HK)$ rose HK$3.05 or 3.58%, closing at HK$88.25; Kingboard Laminates-related concepts also strengthened in tandem, with Kingboard Holdings (0148) $KINGBOARD HLDG (00148.HK)$ up HK$4.1 or 6.67%, closing at HK$65.55, reaching a record high; ZTE (0763) $ZTE (00763.HK)$ gained HK$3.22 or 13.09%, closing at HK$27.82. In the AI large-model segment, Zhipu AI (2513) $KNOWLEDGE ATLAS (02513.HK)$ hit an intraday high of HK$1,657, a new high since listing, and closed up HK$193 or 13.54% at HK$1,618; MINIMAX (0100) $MINIMAX-W (00100.HK)$ fell HK$13 or 1.5%, closing at HK$837.

Pop Mart (9992) $POP MART (09992.HK)$ was boosted after renowned investor Duan Yongping increased his stake to a major shareholder level, driving the stock to rise HK$7.3 or 4.73% against the market trend, closing at HK$161.5—the best-performing blue chip of the day; Lenovo Group (0992) $LENOVO GROUP (00992.HK)$ continued its post-earnings valuation rerating rally, rising another HK$0.68 or 3.58% to close at HK$19.68, marking its fourth consecutive gain; CATL (3750) $CATL (03750.HK)$ rose HK$17 or 2.43% to close at HK$717; CK Hutchison (0001) $CKH HOLDINGS (00001.HK)$ gained HK$1.65 or 2.44% to close at HK$69.15; BYD Electronics (0285 $BYD ELECTRONIC (00285.HK)$ ) rose HK$0.74 or 2.55% to close at HK$29.8; XPeng (9868 $XPENG-W (09868.HK)$ ) gained HK$3.5 or 5.57% to close at HK$66.35; Nio (9866) $NIO-SW (09866.HK)$ launched the new ES9 SUV model, and its share price rose HK$2.62 or 6.28% to close at HK$44.32.

It was reported that the Hong Kong government has requested stricter vetting of mainland residents opening bank accounts in Hong Kong and imposed restrictions on related stock investment activities. Hong Kong banking stocks broadly declined, with HSBC (0005 $HSBC HOLDINGS (00005.HK)$ ) fell HK$1.3 or 0.89% to close at HK$145.3; Bank of China (Hong Kong) (2388) $BOC HONG KONG (02388.HK)$ dropped HK$0.48 or 1.01% to close at HK$47.16; Standard Chartered (2888) $STANCHART (02888.HK)$ declined HK$2.8 or 1.34% to close at HK$206.4. Meanwhile, the market is also concerned that China’s tightening foreign exchange controls could affect mainland capital flows into Hong Kong property, pressuring real estate stocks. Sun Hung Kai Properties (0016) $SHK PPT (00016.HK)$ fell HK$1.7 or 1.29% to close at HK$130.4; New World Development (0017) $NEW WORLD DEV (00017.HK)$ fell HK$0.14 or 1.7%, closing at HK$8.11; CK Hutchison (1113) $CK ASSET (01113.HK)$ fell HK$0.50 or 1.07%, closing at HK$46.06; Henderson Land (0012) $HENDERSON LAND (00012.HK)$ fell HK$0.12 or 0.39%, closing at HK$31.04.

International gold prices declined further, dragging down resources and gold stocks across the board. Chow Tai Fook (1929 $CHOW TAI FOOK (01929.HK)$ ) fell HK$0.57 or 4.99%, closing at HK$10.86; China Hongqiao (1378) $CHINAHONGQIAO (01378.HK)$ fell HK$1.64 or 5.39%, closing at HK$28.80; Zijin Mining (2899 $ZIJIN MINING (02899.HK)$ ) fell HK$1.30 or 3.8%, closing at HK$32.88; CMOC Group (3993) $CMOC (03993.HK)$ fell HK$0.73 or 3.81%, closing at HK$18.43; Laopu Gold (6181 $LAOPU GOLD (06181.HK)$ ) fell HK$13.60 or 2.71%, closing at HK$487.40.

The broader market declined again. Investors looking to deploy dividend-paying stocks amid the downturn and shift from high-risk strategies to defensive ones may consider high-dividend ETFs such as Harvest Asia High Dividend Equity ETF (3145). $ChinaAMC Asia High Dividend ETF (03145.HK)$ , rose HK$0.03 or 0.202% today, closing at HK$14.86. The ETF tracks the 'Bloomberg Asia Pacific High Dividend Yield Index,' which exhibits volatility comparable to the S&P 500 and is relatively well-controlled compared to peer funds. Its constituents are spread across more than 10 Asia-Pacific regions and include leading Asian companies from diverse sectors such as financials, energy, industrials, and technology—for example, COSCO Shipping Energy (1138 $COSCO SHIP ENGY (01138.HK)$ ), AIA (1299 $AIA (01299.HK)$ ), and domestic insurer China Construction Bank (0939 $CCB (00939.HK)$ ), among others. Given its diversified sector exposure, this ETF helps investors achieve portfolio diversification and risk reduction. Additionally, the ETF’s underlying stocks are selected through analyst evaluation, enabling investors not only to receive stable dividend income but also benefit from potential price appreciation—catering to those seeking both steady cash flow and long-term capital growth. The ETF has delivered an annualized return of over +17% over the past three years, with its target annualized dividend yield raised to 8%, aiming for consistent monthly distributions. The next ex-dividend date is scheduled for June 10, 2026, with an expected dividend of HK$0.1 per share. Investors looking for reliable monthly income and seeking to diversify into high-dividend stocks amid current global uncertainties may consider this ETF. However, they should also remain mindful of fluctuations in its dividend yield and sector concentration.

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