Asia Unhedged | China is emerging as one of the best dividend trades this year
A Chinese investor looks at Shanghai Composite Index. Photo: Imaginechina/Xie zhengyi
A Chinese investor looks at Shanghai Composite Index. Photo: Imaginechina/Xie zhengyi
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China is emerging as one of the best dividend trades this year

The government is pushing for more payouts as part of SOE restructuring

April 5, 2017 8:19 PM (UTC+8)

In a surprising development this year, Chinese dividend payout stocks are outperforming the market more than those in the US and Europe, with the Shanghai Dividend Index climbing 8% this year.

What’s driving the Change? Bloomberg reports that Beijing is pushing state-owned enterprises to focus on dividend payouts as part of restructuring efforts, and that that China’s securities regulator will “talk to” firms that don’t.

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