Via Jiaxing Lee and Akour Panerry
Hong Kong/Singapore (Reuters) -New capitalism shadows appeared in the stock market in China as companies, at the request of Beijing, buying their shares and paying their record profits to investors who are wearing a duplicate recovery.
Investors say a standard ram of shares and distributed profit payments determines a cultural transformation in the market, which sheds light on the shareholders ’returns, such as the continuing conversion of corporate governance in Japan.
The profit return on Chinese stocks has risen to about 3 %, which is the highest since 2016, as investors who have courageously in a market that has been bound for years and faces more tension after Donald Trump's return as an American president.
“OTC :):” The organizers and policy makers in China are trying to engineer this culture from the return of shareholders. “
“If this can be designed successfully, this will change the capital market makeup, and I saw some early signs of it,” referring to the increasing returns of shareholders.
Re -purchasing and profits were submitted as part of the proposals by the Chinese authorities in September to raise stock prices and increase consumer morale.
In recent years, the CSI 300 has fought more than 27 % since 2021, compared to 65 % for. The market value of Chinese stocks increased for a decade by about $ 11 trillion.
Continuous concerns about the debtor real estate sector, the concept pressure, the lack of great motivation and geopolitical tensions of morale, caused foreign investment displacement. The threat of tariffs from Trump is another concern.
Even after Beijing showed the willingness to increase the market in September, stock prices lost momentum. The index increased by 40 % per weeks after the first motivation ads, but disappointment of the degree and speed of implementation has witnessed half of the gains since then.
Bhaskar Laxenarane, the chief investment official Julius Bayer (six:).
“You are paid in exchange for this patience. If you are not, this is not worth it.”
Big data
Chinese companies distributed stock profits, which total 2.4 trillion yuan (329.7 billion dollars) in 2024. The shares resets increased to a record level of 147.6 billion yuan last year.
Wu Cheng, head of the Securities Regulatory Committee in China, said on Thursday that more than 310 companies are expected to pay more than 340 billion yuan in December and January.
This is an increase of 9 times in the number of companies and a height of 7.6 times in the amount of profits against the same period last year.
In a sign of how the market matured in one where the shareholders' return became a discrimination, investors were flowing steadily in traded boxes (ETFS), with approximately $ 8 billion of flow since 2020, compared to only $ 273 million in Previous five years, Lseg Lipper data showed.
The CSI profits distribution index – which consists of traditional energy, finance and material companies that have a high profit – increases by 20 % in the past five years compared to a decrease of about 8 % of the blue CSI300 index.
CSI growth index sank 25 % in the same period.
Cultural transformation
Politics measures, including the stock -purchase program for 300 billion yuan, have helped the main mainland companies to improve the returns and evaluation of shareholders, in increasing the focus on companies with a higher return.
“China has never been a group of profit agents as a whole, because it was always considered a play -to -growing play. But now I think we are in a very nice place where you have growth and return,” said Nicholas Choi. , Franklin Timbelton's wallet manager.
Choi said nearly two -thirds of the shares in the Choi portfolio is now at least 2 %, which is “not just a deliberate allocation on my side, but in reality the entire market rose.” “It is a change in culture.”
Also, the high stock profits prevent investors of the main righteousness of income from rushing to the bonds, as they did for several months. The profit return is now much higher than 1.7 % they can earn on 10 -year government bonds.
Battery Maker Contemporary Amperex Technology and E-Commerce Beheemoth Tencent Rose after companies announced the reports or profits of profits.
Goldman Sachs estimates that Chinese companies listed at home and abroad can restore a total of 3.5 trillion yuan for shareholders in 2025, a leap of more than 17 %.
“Companies do not know where their money is placed, so they are now returning them to shareholders. This is a very big transformation in the mentality,” said Herald van der Lindle (New York Stock Exchange :), Head of the stock strategy in the Asia Pacific region in HSBC. .
“I think 10 years ago, you didn't expect it.”
($ 1 = 7.2798)
