The Chinese national flag in the background fluttering with the financial district of Lujiazui.
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Chinese companies attract investors with record payments of dividend and the purchase of sharing in the middle of rigorous corporate management reforms, and some market observers say they are more on the horizon.
Last year, Chinese companies that paid a record 2.4 trillion Juan ($ 328 billion) in the dividend on the list, according to the list Data from the Chinese Securities Regulatory Commission (CSRC). In addition, companies bought shares worth 147.6 billion Juana-all time.
Goldman Sachs estimates that the distribution of Gotovina Chinese companies could reach $ 3.5 trillion this year to achieve a new maximum, the Chinese strategist in the capital wrote in a note published in early February.
HSBC’s Asian capital strategist Herald Van der Linde repeated similar feelings when asked about the prospect of another year of record dividend.
“I think they will continue. Companies do not know where they can invest my money. They don’t get too much from the bank, so they return it to shareholders. This is a very big shift in thinking,” he said.
More than 310 companies are expected to distribute dividends greater than 340 billion Juan in December 2024 alone and January, which marked the ninefold jump in the number of companies paying dividends and 7.6 times increasing the total payment compared to the last period of the last period of the year Who,, CSRC has been added in a statement.
The yield of dividends on Chinese shares also climbed to about 3%, which is the highest level in almost a decade, Goldman Sachs has shown data.
Chinese supplies with high dividend yield surpassed those in Asian emerging markets for about 15%, according to the index data.
Priority for the Government
The Chinese government is actively promoting companies to pay a larger shareholder refund by providing them with tax incentives, he said, HSBC said Van der Linde.
Improvement of shareholders’ refund has become a priority for the State Council and CSRC 2024. Last October, Chinese Central Bank launched 300 billion yuan A targeted program that agrees to help companies and main shareholders buy shares. In April 2024, regulators also enhanced the standards of the shares list, suppressed the illegal sales of shares and Amplified regulation of dividendi payment.
In August last year, 677 companies reported plans for dividend compared to 500 of the same period last year 2023, Data from the Chinese Public Company Association showed.
It is very guided by Beijing in a move to improve corporate efficiency. When Beijing says the jump, DP -says, “How high?”
Jason Hsu
Rayliant Global Advisors
State -owned companies. especially. have was headed On this rise, the payment of dividends and redemption of the shares, said Allianz Global investors. Some notable companies include Petrochin, with Dividend yield of about 8%and a CNOC group with a yield of 7.54%.
“It’s very guided by Beijing in a move to improve corporate efficiency. When Beijing says jump, DP -I say,” How tall? “Said Jason HSU, founder and President Rayliant Global Advisor, adding that the Chinese government provides Chinese companies with favorable loans to fund a dividend increase.
Private companies also increase money payments. For example, giant e-trade jd.com approved a 5 billion dollar redemption over three years in SeptemberAbove 1.9% of dividend yields.
Especially for large cap companies, investors can count on multiple record payments of dividends, especially from Soe Behemoth, HSU told CNBC.
However, the Chinese dividend payment ratio, which measures dividends adopted by shareholders in relation to the company’s net revenue, continues to lag behind some of his Asian colleagues.
Chinese dividend payment ratio was 52.58% from the end of January, According to data compiled by Reuters and LSEG. Although higher than 36.12% of Japan and 27.6% of South Korea, the figure is still lagging behind those of 89.2% of Australia and 78.13% of Singapore.
Restore locals to stock markets
The Government Incentive for High Dividends increases in the short term of Chinese shares, and at the same time attracts long -term investors from the domestic and foreign markets, said Le Xia, the main economist for Asia in BBVA Research.
However, this could also mean more payments to the money that comes out of China to the market at sea, which could make some pressure on the Chinese Yuan, Xia told CNBC.
The larger payments of dividends in the short term are good for the placement of local investors, because there really is no “second place for the Chinese to keep their money” except gold andwith The real estate market and the share of the country remains in Dolrumi, said Shaun Rein, China Market Research Group Director General.
Feeling around Chinese economy and market He was poor in recent years. An initial rush In the reference case of the country CSI 300, it was caused by the glittering government measures introduced in September, pulled out.
“An easy way to look at this, you should be sufficiently paid in dividend or other common action, to take pain due to the fact that recovery cannot happen in estimates,” said Asia for Asia, Bhaskar Laxminarayan .
Investors are paid for patience, he said. “If you aren’t, then it’s not worth it.”
Dividende get cash in the hands of households, and attractive yields will introduce investors to the stock market-those who seek alternatives to the low-inquisitive deposits of the Bank, said Rayliant Global Advisors’s HSU.
“To pay off very high dividends while waiting for [a] Catalyst, it’s pretty good shop, “Hsu said.
