Home » Beijing Stock Exchange’s new regulations encourage listed companies to actively pay dividends – Finance – China Engineering Network

Beijing Stock Exchange’s new regulations encourage listed companies to actively pay dividends – Finance – China Engineering Network

by admin
Beijing Stock Exchange’s new regulations encourage listed companies to actively pay dividends – Finance – China Engineering Network

Beijing Stock Exchange’s new regulations encourage listed companies to actively pay dividends

The Beijing Stock Exchange has recently announced new regulations aimed at encouraging listed companies to actively pay dividends and improve shareholder returns. The 10th Guidelines for the Continuous Supervision of Listed Companies of the Beijing Stock Exchange, titled “Equity Distribution”, has been revised in order to standardize equity distribution and share repurchase behavior. The new regulations will take effect from December 22, 2023.

The “Equity Distribution Guidelines” are intended to enhance the normalized dividend distribution mechanism of listed companies while also increasing supervision of abnormal dividends and high transfers. The Beijing Stock Exchange is urging listed companies to actively pay dividends, particularly those with large profits or financial investments that do not reach a certain proportion. These companies will be required to fully disclose the reasons for the lack of dividends, as well as the plans for the use of undistributed profits and measures to enhance investor returns. Additionally, the new regulations aim to simplify the implementation of mid-term dividends procedures to encourage companies to increase the frequency of cash dividends.

Furthermore, the new rules will tighten restrictions on unusually high proportions of dividends. Companies with high asset-liability ratios and poor cash flow from operating activities but a high proportion of dividends will be required to fully disclose the rationality of the cash dividend plan and its impact on the company’s production and operations.

The regulations also include strengthened supervision of high-end transfers, with any transfer of more than 5 shares for every 10 shares falling within the scope of supervision. High transfers will be linked to performance growth, lifting of restricted stocks, reduction of shareholdings, and other factors in order to ensure that the transfer of shares accurately reflects the operating performance and needs of listed companies.

See also  Listed Companies in A-Share Tourism Sector Experience Profits as Tourism Consumption Surpasses Pre-Epidemic Levels

The Beijing Stock Exchange’s new guidelines are designed to promote transparency and accountability among listed companies, and to ultimately improve investor returns. With these regulations set to go into effect later this year, listed companies will need to adjust their dividend distribution and share transfer practices to comply with the new requirements.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy