Chinese firms begin to embrace dividends

China dividendsChinese companies are becoming more open to issuing dividends in a sign of an improving environment for shareholders. According to a portfolio manager, the greater institutionalisation of China's capital markets is driving this shift in attitudes towards shareholder returns. “We saw signs of change in China’s dividend culture early this year,” said Jing Ning of Fidelity International. “Our preferred holding China Shenhua, the largest as well as lowest cost coal producer in China, issued a special dividend for the first time in its history, as it benefited from higher coal prices following the supply side reforms.” Her colleague Raymond Ma, also a portfolio manager, said he predicted Chinese corporates to deliver “mid-teen earnings growth” in 2018 due to factors such as efficiency improvements. Ning said Chinese regulators' emphasis would be on “quality over quantity” in the years ahead. ©2017 fund global asia

Executive Interviews

INTERVIEW: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

Apr 18, 2018

Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.


HONG KONG ROUNDTABLE: a long-term project

Jun 09, 2018

Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.

SINGAPORE ROUNDTABLE: Small nation, big ambitions

Apr 18, 2018

Our cross-industry panel discussed fund passporting, robo-advisers and the potential of a new investment structure, the S-Vacc. Chaired by George Mitton in Singapore.