Photo taken on Aug. 24, 2020 shows the Shenzhen Stock Exchange in Shenzhen, south China's Guangdong Province. (Xinhua/Mao Siqian)
BEIJING, Nov. 24 (Xinhua) -- Shenzhen Securities Information Co., Ltd., a wholly owned subsidiary of Shenzhen Stock Exchange (SZSE) will release two indexes on November 28 to better earmark SZSE-listed companies with active cash dividend distribution and stocks repurchase, reported Xinhua-run China Securities Journal on Thursday.
Analysts regarded the move as a relatively strong signal to guide market funds into quality listed firms on SZSE as the component stocks may obtain more attention and form explicit demonstration effect in attracting more listed firms to join them.
Currently, dividend distribution has become an important channel for stock market investors to benefit from the economic growth.
From 2020 to 2022, gross cash dividends distributed by SZSE-listed companies kept rising for three consecutive years. In this year, nearly 100 SZSE-listed companies disclosed their semiannual cash dividend distribution plans by the end of September, up 53 percent year on year and around 90 percent of them had finished distributing cash dividends of nearly 20 billion yuan.
The Shenzhen dividend 300 index is designed to track the top 300 SZSE-listed companies by comprehensive rankings based on their dividend growth rates and proportions of undistributed profits among the SZSE-listed A-share companies with relatively gratifying cash dividend yield in the past three years.
In the past year, the component stocks of the above index reported cash dividend distribution of nearly 200 billion yuan, up 43 percent from 2020 and accounting for over a half of the total cash dividend distribution for SZSE-listed companies.
The other index tracks the top 50 listed companies by comprehensive rankings based on positive stock repurchase value and proportions among the SZSE-listed companies that announced and implemented stock repurchase plans in the past year or released their stock repurchase plans in the past three months.
Year to date, component stocks of the Shenzhen repurchase index involved in stocks repurchases of 18.8 billion yuan, accounting for more than 70 percent of the comparable aggregate by listed companies on SZSE.
By the end of October, the market capitalization (market cap) of underlying stocks of the Shenzhen dividend 300 index and the Shenzhen repurchase index was 9 trillion yuan and 1.8 trillion yuan respectively.
Market analysts said market cap of the two indexes approached 11 trillion yuan and they represented sufficient targets for investment and ample liquidity, which would provide enough room for market institutions to develop related products including the exchange-traded funds (ETF). (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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