China’s listed banks are set to issue record-high dividends for 2021, according to the latest round of annual reports released by members of the sector.
As of 31 March, 23 A-share banks in China have released their 2021 performance reports, with 21 of these banks unveiling dividend plans that point to total dividend issuance of nearly 500 billion yuan.
The six big state-owned banks alone will issue over 380 billion yuan in dividends to shareholders, after collectively achieving net profits of 1.27 trillion yuan in 2021.
Dong Ximiao (董希淼), chief researcher with MUCFC and a researcher at Fudan University’s financial research institute, said the move would help to improve the lustre of listed banks in China.
“For listed banks, the provision of stable, long-term dividends and comparatively high cash-dividend ratios helps to better provide returns to shareholders and investors, as well as helps to prime the confidence of investors,” said Dong.
“It will attract more investors to make long-term investments and value investments.”