China’s A-share Banks Issue Record High Dividends of Nearly 550 Billion Yuan

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Chinese A-share banks have decided to issue a record-breaking payout of nearly 550 billion yuan in dividends to shareholders for 2021.

According to a report from Diyi Caijing out of 42 listed banks in China a total of 40 have approved the issuance of dividends collectively worth 549.107 billion yuan, for the highest level on record.

This record-high payout means that the dividend yield for some A-share banks in China is in excess of 7%, markedly higher than the returns for wealth management products (WMP’s).

Data from Wind further indicates that as of 7 July 30 listed banks in China have released their dividend issuance plans, most of whom are municipal commercial or rural commercial banks.

The big six state-owned banks alone are issuing over 380 billion yuan in dividends, accounting for nearly 70% of the total dividend payout for the Chinese banking sector.

This includes 104.534 billion yuan in dividends from ICBC, 91.004 billion yuan from China Construction Bank (CCB), 72.376 billion yuan from Agricultural Bank of China (ABC) , 65.06 billion yuan from Bank of China (BOC), 23.541 billion yuan from Bank of Communications (BOCOM) and 22.856 billion yuan from Postal Savings Bank of China (PSBC).