Shanghai bourse encourages listed companies to increase dividend payouts

The Shanghai Stock Exchange (SSE) has pledged to promote strengthened shareholder returns by encouraging listed companies to increase dividend payouts and continuously enhance corporate value.

An SSE statement on Friday said the bourse will guide listed companies to raise the scale and frequency of dividend distributions, and to make better use of tools such as share buybacks, mergers and acquisitions (M&As) and investor engagement to unlock long-term corporate value.

The statement was released following a Thursday seminar that brought together representatives of a number of Shanghai-listed companies, insurance firms and fund management institutions.

Echoing the SSE, corporate representatives pledged to enhance operational performance, reward shareholders with generous dividends, and strategically employ M&As to strengthen business capabilities.

A group of high-return companies has already emerged in the Shanghai market. For example, firms listed on the main board reported an average dividend payout ratio of 39 percent in 2024, with an average dividend yield of 3.6 percent.

The SSE said China's capital market has been improving in framework, structure and mechanism, with a strengthened foundation for high-quality growth.

Highlighting confidence in Chinese assets, the SSE said it will enrich its portfolio of dividend-related index products and foster a virtuous cycle of long-term capital, patient capital and high-quality equity assets.