To implement the decisions and arrangements of the CPC Central Committee and the State Council regarding the capital market, follow through on the spirit of the meeting of the Political Bureau of the CPC Central Committee and the Several Opinions on Strengthening Supervision, Preventing Risks and Promoting High-Quality Development of the Capital Market, and promote the implementation of the "Corporate Value and Return Enhancement" action plan, Shanghai Stock Exchange (SSE) held a seminar on high dividend and returns & listed company value enhancement on June 5. The seminar was held to facilitate in-depth discussions on further increasing the valuation of companies with high dividends and high dividend yields, and to solicit opinions and suggestions from the public. Attendees include representatives from SSE-listed companies, such as China Life Insurance Company Limited, Ping An Insurance (Group) Company of China, Ltd., China Pacific Insurance (Group) Co., Ltd. and other insurance institutions, and representatives from fund management companies such as E Fund, China Asset Management Co., Ltd., GF Fund Management Co., Ltd., Fullgoal Fund, and Harvest Fund.
A number of high-dividend and high-return listed companies have taken shape on the SSE. For instance, the overall dividend payout ratio for companies listed on the SSE Main Board was 39% in 2024, with a dividend yield of 3.6%. It is agreed upon by participating listed companies that with the support of policies such as the Several Opinions on Strengthening Supervision, Preventing Risks and Promoting High-Quality Development of the Capital Market and the "M&A Six Opinions", they are taking active part in "Corporate Value and Return Enhancement" action plan and working hard to improve business quality and efficiency, offer high dividends to shareholders, and leverage tools such as M&A promptly, so as to further build corporate strength. Moreover, they will continue to enhance communication with various parties to explore effective ways to improve valuation management, aiming to create greater value for investors.
The participating companies believed that as domestic economic transformation and upgrading accelerate and risk-free interest rate continues to decline, assets featuring high dividend yields, represented by companies in the banking, energy, and power sectors, are becoming increasingly important in long-term capital allocation. In recent years, dividend indices have shown strong market performance. The static stock valuation of dividend assets is relatively low, while their business quality remains solid, presenting strong investment appeal. The participating companies also made recommendations on enhancing the stability and predictability of cash dividends from listed companies, focusing on main business operations, improving corporate governance, and more effectively communicating investment value.
A relevant official from the SSE stated that China's capital market system, structure, and regulatory framework are continuously improving, and the foundation and conditions for high-quality development are constantly strengthening. It is vital to stay committed to Chinese assets. In the future, the SSE will promote listed companies to make higher dividend payouts, enhance frequency of dividend distributions, and effectively utilize value management tools like share buybacks, M&A, and investor communication to continuously elevate investment value. On the supply side, the SSE will work to release more dividend indices to meet diverse market investment needs, facilitating a virtuous cycle between long-term capital, patient capital, and high-quality equity assets.
