Listed Chinese companies to shell out US$419 billion in dividends this year: Goldman Sachs
That would represent a 10 per cent increase from 2024, when more than 4,300 companies listed in Hong Kong, the US and on the mainland paid out a record 2.7 trillion yuan in dividends, according to a report published on Sunday by the American investment bank.
The improvement was largely driven by a push from Beijing last year requiring listed companies to pay dividends multiple times a year to improve investor confidence. Following a prolonged slump in the stock market, the State Council released policy guidelines in April 2024 to strengthen the oversight of new listings, restrict share sales by major shareholders and encourage long-term capital inflows into the market.
Authorities also restricted major shareholders from selling stakes if their companies failed to meet dividend payout requirements.
As a result, more than 200 companies initiated dividend payments for the first time since 2020 and 1,080 companies listed on the mainland paid midterm or special dividends in 2024, Goldman said. A total of 5,420 companies were listed in Shanghai, Shenzhen and Beijing at the end of April, according to the latest data from the China Association for Public Companies.
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The dividend payout ratio reached 39 per cent, up from 37 per cent in 2023 and a 10-year average of 31 per cent, the bank said.
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