In-depth Analysis of High-Dividend Blue-Chip Investment Strategy in China's Stock Market for 2026

As of December 18, 2025, the A-share market is in a consolidation pattern. The Shanghai Composite Index has recently fluctuated in the range of 3800-4000 points, and the market is generally optimistic about the Shanghai Composite Index reaching the range of 3500-4000 points in 2026. According to market analysis, China’s policy shift and technological momentum are boosting market sentiment, laying the foundation for economic recovery in 2026 [1].

Based on current data and market expectations, 2026 is expected to see a structural slow bull market for undervalued high-dividend blue chips, mainly based on the following logic:

1. Obvious Valuation Advantage
   : Current high-dividend blue chips are generally undervalued
2. Increased Policy Support
   : The Chinese government is actively formulating the 2026 economic work plan [2]
3. Attractive Dividend Yield
   : Compared with other investment products, high-dividend blue chips provide stable cash flow returns

[0]:

• Current stock price: 9.51 yuan, year-to-date increase: +8.44%
• Market capitalization: 1.74 trillion yuan, P/E ratio: 10.87x
• ROE: 10.45%, Net profit margin:5.65%
• Financial attitude: Conservative, high depreciation/capital expenditure ratio

[0]:

• Annualized volatility:23.01% (relatively high)
• RSI indicator:36.29 (in oversold range)
• 20-day moving average:9.79 yuan,50-day moving average:9.43 yuan

: Based on historical dividend policy and current stock price, the expected dividend yield is about5.8%

[0]:

• Current stock price: 102.31 yuan, year-to-date decrease:-11.03%
• Market capitalization:1.68 trillion yuan, P/E ratio:11.79x
• ROE:10.42%, Net profit margin:13.72%
• Financial attitude: Conservative, abundant cash flow

[0]:

• Annualized volatility:14.41% (relatively low)
• RSI indicator:12.02 (severely oversold)
• 20-day moving average:106.15 yuan,50-day moving average:106.70 yuan

: Expected dividend yield is about4.5%

As a leading company in the shipping industry, COSCO SHIPPING Holdings benefits from the recovery of global trade and the cyclical rebound of shipping. The expected dividend yield can reach 6.2%, which is the highest among the three core targets.

:

• PetroChina:60% (core position)
• China Mobile:12% (stable position)
• COSCO SHIPPING Holdings H:12% (growth position)
• ETF:16% (diversified allocation)

[0]:

• Expected portfolio dividend yield:5.32%
• Expected annual total return:about5.3%

:

1. Current Situation
   : Dividend return5.3% + price appreciation0% = total return5.3%

2. When dividend yield drops to4%
   :
   • PetroChina target price:13.79 yuan (+45.0%)
   • China Mobile target price:115.10 yuan (+12.5%)
   • COSCO SHIPPING Holdings H target price:11.62 yuan (+55.0%)
   • Portfolio total return:41.5%

3. When dividend yield drops to3%
   :
   • PetroChina target price:18.39 yuan (+93.3%)
   • China Mobile target price:153.47 yuan (+50.0%)
   • COSCO SHIPPING Holdings H target price:15.50 yuan (+106.7%)
   • Portfolio total return:86.3%

1. Initial Position Building
   : Establish50% position at current price level
2. Add Positions on Dips
   : Add positions in batches when the stock price corrects by5%-10%
3. Take Profits at Target Levels
   : Take partial profits when the dividend yield drops to4%, and take full profits when it drops to3%

1. Position Management
   : Single stock position does not exceed60% of total assets
2. Stop-loss Setting
   : Set a15% stop-loss line to prevent systemic risks
3. Regular Evaluation
   : Re-evaluate the portfolio allocation every quarter

1. Macroeconomic Indicators
   : GDP growth rate, inflation rate, interest rate policy
2. Industry Prosperity
   : Oil price trends, shipping indices, communication industry policies
3. Company Fundamentals
   : Quarterly financial reports, dividend policies, operating data

Based on the current market environment and data analysis, under the expectation of China’s stock market ranging from3500 to4000 points in2026, the structural slow bull market for undervalued high-dividend blue chips has a high probability of realization. By reasonably allocating PetroChina (60%), China Mobile (12%), COSCO SHIPPING Holdings H (12%), and related ETFs (16%), investors are expected to achieve a stable dividend yield of about5% and gain additional returns during the stock price rise.

:

1. Low valuation provides a margin of safety
2. High dividends provide stable cash flow
3. Policy support promotes value revaluation
4. Structural market brings excess returns

It is recommended that investors adopt the concept of long-term value investment, and achieve stable returns under risk control through phased position building and dynamic adjustments.

[0] Gilin API Data
[1] Yahoo Finance - “China Turnaround in2026?3 Stocks to Play the Rebound” (https://uk.finance.yahoo.com/news/china-turnaround-2026-3-stocks-161000702.html)
[2] Wall Street Journal - “Markets Eye China Economic Summit for Clues on2026 Policy Plans” (https://cn.wsj.com/articles/markets-eye-china-economic-summit-for-clues-on-2026-policy-plans-1df2a15b)