China’s securities regulator proposed to improve rules on listed companies’ dividend payouts – state media

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

The China Securities Regulatory Commission (CSRC) has proposed to improve rules on listed companies’ cash dividend payout, according to state-backed media China Securities Journal.

Companies listed on the Main Board that fail to reach a certain proportion of dividend payout will be required to make explanations, the report said.

Companies that have made large financial investments but have a low percentage of dividends will be subject to stricter disclosure requirements and will be urged to focus on main business and provide better returns to investors, it said.

The regulator will further facilitate the procedure for interim dividend payout, study making evaluation of information disclosure in China’s stock exchanges more tilted towards high dividend-payout companies and encourage fund companies to issue dividend fund products and meanwhile strengthen regulations on companies with dividend payments that exceed their ability, it said.

The regulators plan to ramp up regulation on companies that do not pay dividends or pay too little dividends, further optimize the method and pace of dividend payouts, the report said.