China's listed companies stingy with interim dividends

The stock dividend policy at most Chinese companies shows little correlation to fundamentals.

Just 1.96%, or 14, of the listed companies in China that announced interim results last week have announced dividends. At the same time last year, 3.4% companies had announced a dividends, and a full 60% had by the end of the year. Stock is the favourite form of dividends in China, since it is not taxed like cash dividends.

But one trader said that the real importance of dividends lay in the fact that they were one of the many instruments players use to manipulate the markets.

The CSRC, which held a securities 'summit' last week has been roundly criticized by market participants for depressing the market through its reform...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222