Chinese listed companies pay more dividends

Updated 2018-03-16 10:40:08 Xinhua

Chinese listed companies have paid out more dividends than before as regulators demanded firms reward investors, official data showed.

In 2017, 2,451 companies listed in Shanghai and Shenzhen gave 979.3 billion yuan (about 155 billion U.S. dollars) in profit to their investors, accounting for 70.3 percent of the total number of listed firms, according to figures from the China Securities Regulatory Commission (CSRC).

That represented an increase from 830.8 billion yuan and 67.3 percent in 2016.

In recent years, authorities have encouraged listed firms to offer more yields to investors in the stock market, where dividend payouts were previously infrequent.

In August 2015, the CSRC and other three government agencies jointly issued a notification, requiring capable listed companies to pay cash dividends.

Regulators can conduct on-site inspections of companies that maliciously refuse payouts, the Shanghai Stock Exchange said in February.

Between 2014 and 2016, Chinese listed companies paid on average over 30 percent of their net profits to shareholders, a moderate level compared with those in other countries.

Dividend payouts are not only good for investors but also listed companies themselves, as they can help reduce stock price volatility and support stable operation, said Kou Guangwu, secretary of the board of directors of the Shanghai-listed Wanhua Chemical Group Co., Ltd.

China has over 3,500 listed firms, with their total market value exceeding 55 trillion yuan.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58October 22 2018 06:53:02

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16October 22 2018 06:53:02

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18October 22 2018 06:53:02

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords