{
  "id": 3442516,
  "title": "China dividend stocks back in vogue as AI trade fizzles out and bond yields fall",
  "url": "https://urgent.news/2026/08/26/china-dividend-stocks-back-in-vogue-as-ai-trade-fizzles-out-and-bond",
  "topic": "ai",
  "section": "AI",
  "published": "2026-08-26T06:00:39.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/markets/article/3365288/china-dividend-stocks-back-vogue-ai-trade-fizzles-out-and-bond-yields-fall"
  },
  "original_language": "en",
  "account": "Chinese investors have been flocking to dividend stocks after a global technology stock downturn, with select old-economy firms outperforming AI-focused companies. The Shanghai Stock Exchange Dividend Index of 50 high-dividend stocks, spanning energy, banking, and transport sectors, has climbed 3.8% this month, outpacing a 0.2% increase in the tech-heavy Star Market 50 index. Should this trend persist, the dividend index would extend its lead for a second straight month, after a 13% surge in July and a 26% slump in the tech index. This divergence highlights growing caution among domestic investors regarding the AI sector, while they opt for safer investments to capitalize on potential rebounds. Furthermore, dividend stocks have gained appeal following China's lower-than-anticipated July economic data, causing sovereign bond yields to drop across the yield curve due to expectations of additional policy easing. Analyst Zhao Yang of Sealand Securities notes, \"The rebound in dividend stocks is due to clearer interim results, the correction of excessive declines, and a shift in investment styles following the tech rout.\" The index's emphasis is on traditional industries, with coal and oil representing 32% of the weighting, banking at 29%, and transport at 14%. The largest holder is Cosco Shipping Holdings, accounting for 5.08% of the index, followed by coal producer Yankuang Energy Group at 3.33%, and Shanghai Zhonggu Logistics at 3.31%. The dividend index currently offers a dividend yield of 4.08%, surpassing the 1.682% yield on China's 10-year government bond, which is near a one-year low. However, the dividend index has lagged behind the Star Market 50 index this year, with a 10% gain compared to the 22% rise in the tech benchmark. Since July, Chinese tech stocks have diverged from their US counterparts in performance, while US tech stocks have nearly recovered to near-record highs. CCSH Corporation, the parent firm of NAND flash maker Yangtze Memory Technologies Corporation, is set to list in Shanghai, with a potential IPO size surpassing the 66.6 billion yuan (US$9.9 billion) raised by ChangXin Memory Technologies. Alibaba Group Holding, which owns the South China Morning Post, also plans to raise HK$80 billion (US$10.2 billion) in Hong Kong to fuel its AI expansion. Analyst Chen Xiao of Ping An Securities remarks, \"With a defensive and cautious market sentiment, low-volatility and high-dividend-yield assets are expected to maintain their edge.\"",
  "summary": "Chinese investors have been seeking shelter in dividend stocks since a global rout on technology stocks, with a handful of old-economy companies beating chipmakers and artificial intelligence (AI) hardware manufacturers. The Shanghai Stock Exchange Dividend Index of 50 high-dividend stocks from the energy, banking and transport industries has risen 3.8 per cent this month, trouncing a 0.2 per…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}