Original title: Dividends of listed companies should be distributed at a high level.
In order to further improve the normalized dividend mechanism of listed companies and improve the level of investor returns, the China Securities Regulatory Commission (CSRC) recently issued the "Guidelines for the Supervision of Listed Companies No. 3 - Cash Dividends of Listed Companies" and the "Decision on Amending the Guidelines for the Articles of Association of Listed Companies".
As an effective means of rewarding investors and managing market value, listed companies can share dividends well, which can promote a win-win situation: for companies, it can improve the efficiency of asset use and optimize the level of corporate governanceFor investors, they can enjoy the dividends of corporate growth earlier and enhance their sense of investmentFor the market, it can promote the establishment of a long-term investment philosophy, improve the A-share investment ecology, and promote the stable and healthy development of the market.
Thanks to the continuous guidance of the regulatory authorities, the willingness and amount of dividends of listed companies have continued to rise. The data shows that in the past five years, A-share listed companies have paid a cumulative dividend of 82 trillion yuan, of which, in 2022, a total of 3,291 listed companies in Shanghai and Shenzhen will pay cash dividends, with a dividend amount of 21 trillion yuan, 1 trillion dividends for domestic investors6 trillion yuan, a year-on-year increase of 227%, and the number of dividends accounted for 671%。
It should also be noted that, compared with major mature markets, there is still room for optimization in the balance, timeliness and stability of dividends of A-share listed companies, and investors' sense of gain needs to be enhanced. At the moment of "activating the capital market and boosting investor confidence", it is necessary to further enhance the awareness of dividends, optimize the dividend method, and improve the level of dividends.
Where is the high level of dividends?Gao is proactive. Although the enthusiasm for dividends of A-share listed companies has increased, there are still a large number of "iron roosters", which obviously have the conditions for dividends, but they are unwilling to pay dividends or have a low proportion of dividends, few times, and even those who have not paid dividends for more than 10 years, which is obviously unreasonable. In this regard, the China Securities Regulatory Commission further clearly encourages the orientation of cash dividends, and strengthens institutional constraints such as disclosure requirements for companies that do not pay dividends to supervise dividends. By taking hard measures, we will guide listed companies to abandon short-sighted behaviors and enhance their awareness of returns, so as to solve the long-standing problem of some listed companies emphasizing financing and ignoring returns.
High-level dividends are normalized. Whether a company can continue to and stably give back to investors is one of the important yardsticks to measure the value of its investment, which requires listed companies to plan dividends with a long-term vision. It is not advisable to pay dividends in the form of "not pulling out a dime" and "going up and down", and it is also not advisable to "kill chickens and take eggs" and do everything possible to pay dividends. Listed companies should combine their own realities, pay dividends in a planned and rhythmic manner, improve investors' dividend experience, and further consolidate the benign relationship between the two. It is precisely for this purpose that the China Securities Regulatory Commission simplifies the medium-term dividend procedure and promotes the further optimization of the dividend method and rhythm.
The high level of dividends is high in rationality. For a long time, the problems of abnormally large proportion of dividends, dividends in a state of loss, and high-leverage dividends have been repeatedly banned, which not only increases the financial risks of listed companies, affects investor confidence, but also interferes with the normal operation of the capital market. The China Securities Regulatory Commission (CSRC) emphasized strengthening the constraints on enterprises with abnormally high proportion of dividends, especially for companies with high asset-liability ratios, poor cash flow from operating activities, and large proportion of cash dividends, aiming to force listed companies to comprehensively consider their own profitability, capital expenditure arrangements and debt repayment ability when formulating cash dividend policies, take into account investor returns and company development, and distribute dividends scientifically and reasonably.
The dividends are divided into real gold, and the creation of real gold is inseparable from the listed company's focus on the main business, improve the quality of operation, and do a good job in business performance. In this way, Fang Energy can continue to generate abundant cash flow, and only then can it have the confidence to pay generous dividends. It is believed that with the continuous high-quality development of China's economy and the in-depth advancement of capital market reform, A-share listed companies will move towards a high level of dividends and truly become a "new channel" for investors to share the dividends of economic growth. (Li Hualin).
*:Economy**.