Charted

China’s Stock Payouts Are Slowly Improving

Inclusion in MSCI Inc.’s international stock indexes may spur companies to increase dividends

A growing trend among China’s A-share stocks to increase dividend payouts may strengthen with their inclusion in MSCI Inc.’s international stock indexes, a move that incentivizes companies to make themselves more attractive by offering steady income streams. The dividend-payout ratio for members of the CSI 300 Index has been at least 30 percent since 2014 as authorities have been pushing for higher dividends to help develop the equity market. The nation’s securities regulator has made cracking down on “iron roosters” -- a Chinese saying for a stingy character -- a top priority in 2018.

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