Chinese companies set records for dividends and share buybacks

Chinese companies are setting records for dividend payments and share buybacks thanks to corporate governance reforms. In 2024, they paid 2.4 trillion yuan (about $328 billion), and in 2025, according to forecasts, this amount will reach 3.5 trillion yuan. 

State-owned enterprises such as PetroChina and CNOOC demonstrate dividend yields above 7%, which makes Chinese stocks attractive to investors.  

The dividend payout ratio in China was 52.58%, which is higher than in Japan (36.12%) and South Korea (27.6%), but still inferior to Australia (89.2%) and Singapore (78.13%). The high profitability of Chinese stocks allows them to outperform companies in emerging Asian markets by 15%, attracting the attention of both domestic and foreign investors. However, such an approach may increase capital outflow and create pressure on the yuan, analysts warn.  

Companies continue to return funds to shareholders, as they face limited investment opportunities and low returns on bank deposits. This process, supported by tax incentives and government assistance, reflects a significant shift in China's corporate strategy.