HK to see drop in dividend growth - Markit

Shareholders in basic resources companies are expected to see the biggest dividend cuts in 2013 but the automobile sector is a notable bright spot.
The Chinese state council’s plan, announced this year, to clean up pollution is expected to impact demand for coal.
The Chinese state council’s plan, announced this year, to clean up pollution is expected to impact demand for coal.

Dividend growth in Hong Kong is set to slow this year, with even the dividend-rich banking sector taking a hit, data research group Markit says.

Aggregate dividend growth for companies in the Hang Seng Composite index, which covers the bulk of the Hong Kong stock market, is projected to slow to 8.6% in 2013 from an average annual rate of 15.1% in the previous three years.

Six out of 19 Hong Kong sectors are expected to see slower or negative growth, Markit says.

It predicts that basic resource stocks will take the biggest hit, with dividends set to drop 17.2% as mining groups deal...

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