China’s public companies listed in its A-share market have significantly increased their dividend payouts in 2024, with 481 companies listed on the Shanghai bourse pledging to pay their share-holders the mid-year dividends to date, which marks a sharp rise of 354 percent from last year, the Shanghai Stock Exchange said on Thursday.
The total dividend payouts are calculated at 574.9 billion yuan ($78.78 billion), increasing 184 percent year-on-year.
Some listed companies have paid out dividends twice or even three times this year. For instance, Kweichow Moutai Co, China National Nuclear Power Co, and Will Semiconductor Co have dispensed dividends twice this year, according to a report by China Media Group (CMG).
According to data provided by financial service Wind.com, more than 200 Shenzhen-listed companies have announced their mid-year dividend plans for 2024, with the total payout reaching 35 billion yuan. In comparison, the mid-term dividend plans for the same period last year stood at merely 9 billion yuan.
Significant dividend payouts have been noted among companies across the A-share market this year. In Shanghai, Industrial and Commercial Bank of China (ICBC) leads with a payout sum of 51.1 billion yuan, followed by China Mobile’s 51 billion yuan, China Construction Bank’s 49.3 billion yuan, and Agricultural Bank of China’s 40.7 billion yuan.
Since 2023, stock market regulators have introduced policies encouraging listed companies to optimize dividend strategies. The measures have increased awareness of dividend payout, which is welcome by investors.
Latest examples of favorable policies include a notice issued by the China Securities Depository and Clearing Co on Tuesday, announcing that handling fees for dividends from A-share listed companies will be halved, effective from January 1, 2025.
On the same day, the State-owned Assets Supervision and Administration Commission of the State Council issued a circular, aiming to guide listed central SOEs to establish reasonable and sustainable profit distribution plans, such as increasing the frequency of cash dividend payouts, optimizing the timing of payouts, and raising the proportion of cash dividends.