# China dividend stocks back in vogue as AI trade fizzles out and bond yields fall > Source: > Published: 2026-08-26 06:00:39+00:00 # China dividend stocks back in vogue as AI trade fizzles out and bond yields fall Shanghai bourse index shows growth of 3.8% for energy, banking and transport industry stocks, crushing a 0.2% artificial intelligence gain [Zhang Shidong](/author/zhang-shidong)in Shanghai [Chinese investors](https://www.scmp.com/business/banking-finance/article/3361488/chinese-investors-rush-private-funds-pouring-us12-trillion-securities?module=inline&pgtype=article)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](https://www.scmp.com/topics/artificial-intelligence?module=inline&pgtype=article)(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 cent gain in the chip-heavy Star Market 50 index. If the momentum holds up, it will extend the outperformance of the dividend index to a second consecutive month. The gauge jumped 13 per cent in July, while the tech index slumped 26 per cent for its biggest monthly decline on record. [cautious about the AI trade](https://www.scmp.com/business/china-business/article/3364229/chinese-hedge-funds-rotate-out-nvidia-and-us-hyperscalers-evolving-ai-trade?module=inline&pgtype=article)and defensive in positioning outsized gains, seeking safer bets to place their investments as some headwinds against technology stocks still lingered. Meanwhile, dividend stocks have also become more attractive after China’s worse-than-expected July economic data rapidly drove the sovereign bond yields lower across the curves on expectations about further policy easing. “The rebound in dividend stocks is a result of more visible interim results, repair of excessive declines and a rebalancing of investment styles after the tech rout,” said Zhao Yang, an analyst at Sealand Securities. “The gains are concentrated on resources companies, such as coal and petrochemicals.” [Shanghai exchange](https://www.scmp.com/topics/shanghai-stock-index?module=inline&pgtype=article)is dominated by traditional industries. The coal and oil sector accounts for 32 per cent of the weighting, followed by the banking industry with a 29 per cent representation and transport with 14 per cent, according to the fact sheet posted on the website of the Shanghai bourse, the index compiler.