China is emerging as one of the best dividend trades this year
The government is pushing for more payouts as part of SOE restructuring
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.