Chinese companies are attracting investors with record-high dividend payouts and share buybacks, driven by corporate governance reforms and government incentives. This shift in mindset is evident as companies seek to distribute their surplus cash to shareholders. Analysts predict continued growth in dividend payouts, leading to attractive yields for investors.
Chinese companies are enticing investors with record dividend payouts, with some market watchers saying more are on the horizon.
Goldman Sachs estimates that Chinese companies' cash distribution could hit $3.5 trillion this year to notch a new high, the bank's China equity strategist Kinger Lau wrote in a note published in early February.HSBC's Asia equity strategist Herald van der Linde echoed similar sentiments when asked about the prospects of another year of record-high dividends.
Improving shareholder returns became a priority for the State Council and the CSRC in 2024. Last October, China's central banktargeted relending program to help listed companies and major shareholders buy back shares. In April of 2024, regulators also reinforced stock listing standards, clamped down on unlawful share sales, and
DIVIDENDS SHARE BUYBACKS CORPORATE GOVERNANCE CHINESE ECONOMY INVESTOR ATTRACTION
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