Dividend payments by the biggest Chinese companies last year hit a fresh record of RMB 1.2 trillion ($174.43 billion), according to an S&P Global Market Intelligence study released on Wednesday, reports the South China Morning Post. Analysts expect the high payouts to continue this year as a result of government policies. The total payout by companies in the CSI 300, which tracks the biggest 300 stocks in Shenzhen and Shanghai, was up 14% last year, the report said.
China has been the largest market for dividend distribution in the Asia-Pacific region since 2015 and is expected to remain on top this year thanks to government policies encouraging companies to pay dividends, according to senior research analyst Ruiying Zhao, who wrote the report.
“Banks, food and beverage and energy sectors will significantly contribute to the anticipated upsurge in aggregate dividends for the CSI 300 Index,” Zhao said.
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