Citi Securities says during the 2016–18 and 2022–23 Fed rate-hike cycles
southbound Stock Connect flows showed sustained net inflows in the early phase
and a marked slowdown in the later phase; CHINA'S YUAN FIXING moves were highly
synchronous with those inflow patterns. The firm maintains its Hong Kong
dividend strategy recommendation but notes continued rises in overseas risk-free
rates have narrowed high‑dividend Hong Kong stocks’ relative yield advantage. It
advises allocations to emphasize cash‑flow stability, earnings visibility and
dividend sustainability, and to favor sub-sectors with high southbound ownership
and relatively low foreign marginal pricing power.
