SHANGHAI/HONG KONG – Chinese listed companies are rushing to buy back shares and lift dividends as they respond to regulators' calls that echo reform efforts in Japan and South Korea, driving a welcome rally even if investors doubt that broader governance changes are afoot.China-listed firms announced record cash dividends totaling 2.2 trillion yuan for 2023 despite a fall in combined profit, official data shows. Over 100 listed companies returned money to investors for the first time.
This mimics Japan's corporate reform and South Korea's 'Value Up' program, said John Pinkel, partner of New York-based hedge fund Indus Capital, which recently added China exposure.'The common denominator of these positions: they all have large cash positions, are buying back shares or increasing dividends, and we like their business models.'PayoutThe China campaign has seen many firms arm-twisted to pay dividends.