Chinese firms increase shareholder returns via higher dividends, buybacks amid corporate reforms.

Chinese companies are boosting shareholder returns through higher dividends and buybacks, driven by government-backed corporate reforms. This shift aims to enhance domestic equity investments and boost stock prices. In 2024, China's dividend yield hit its highest point in eight years at 2.8%, with total cash dividends reaching a record 3.4 trillion yuan in 2023. The trend is expected to continue, with Goldman Sachs projecting a 17% increase in shareholder returns for 2025. This move comes amid a challenging economic environment, including concerns over the property sector and geopolitical tensions.

2 months ago
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