China’s push for corporate dividends should attract investment, a regulator says

LONDON (Reuters) – Government policies encouraging companies to pay larger dividends should make China’s stock market more attractive to foreign investors, a senior Chinese regulator said on Thursday.

Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said the Chinese government last month unveiled policies to strengthen capital markets, including measures to encourage listed companies to pay more dividends.

“Chinese listed companies have traditionally not paid enough dividends. Now we encourage them to pay more dividends,” Fang said during a roadshow in London aimed at attracting more foreign investment in listed Chinese companies.

“This should significantly increase the value of Chinese stocks for investors in the future,” Fang said at an event hosted by the Shanghai and Shenzhen stock exchanges.

(Reporting by Huw Jones, editing by William Maclean)