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: Joining the family

Dec 12, 2017

An acquisition has increased the visibility of Natixis investment managers in Australia. George Mitton talks to its local chief executive.

INTERVIEW: ‘It cannot be excluded’

Sep 27, 2017

Bond Connect’s launch means China’s onshore bond markets are more accessible than ever. Mo Ji, an economist at amundi, tells George Mitton why that matters.

Roundtables

REAL ESTATE ROUNDTABLE: In search of a home

Jul 17, 2017

From Korean warehouses to Chinese hospitals, investors’ holding periods are growing in Asia. But in a market awash with liquidity, so is competition for assets. Our panel in Hong Kong discuss real estate investment.

ROUNDTABLE: More transparency, less certainty

Mar 20, 2017

Our panel discussed exchange-traded funds, regulatory overdrive and whether mutual fund recognition has been a failure. Chaired by George Mitton in Hong Kong.