Amid a strong dividend distribution trend among listed companies this year, the financial and non-banking sectors have joined the payout wave. Ahead of the new year, listed brokerages are set to issue another round of "cash dividends."
This week, three brokerages—Industrial Securities Co.,Ltd. (601377.SH), China Great Wall Securities Co.,Ltd. (002939.SZ), and Capital Securities Corporation Limited (601136.SH)—will execute cash dividend distributions. According to announcements, Industrial Securities and China Great Wall Securities will implement interim dividends of RMB 432 million and RMB 307 million, respectively, while Capital Securities will distribute a Q3 dividend totaling RMB 273 million. Combined, these three brokerages will distribute over RMB 1 billion in dividends.
The dividend wave continues next week, with Huaxi Securities Co.,Ltd. (002926.SZ) and Western Securities Co.,Ltd. (002673.SZ) also set to issue cash payouts. In total, five listed brokerages will distribute dividends exceeding RMB 1 billion over the next two weeks.
Additionally, other brokerages, including Zhejiang Securities and Guosen Securities, have announced dividend plans this month, proposing payouts of RMB 317 million and RMB 1.024 billion, respectively.
Tian Lihui, Dean of the Institute of Financial Development at Nankai University, attributes the recent surge in brokerage dividends to stricter regulatory requirements under the new "National Nine Articles," which encourage stable returns. Improved profitability among leading brokerages has also supported higher dividend payouts.
Small and mid-sized brokerages dominate this dividend wave, though major players like Huatai Securities have also participated. Last week, Huatai Securities distributed an interim dividend of RMB 1.354 billion (RMB 0.15 per share). This week, Industrial Securities will distribute RMB 432 million (RMB 0.5 per 10 shares), followed by China Great Wall Securities (RMB 307 million, RMB 0.76 per 10 shares) and Capital Securities (RMB 273 million, RMB 1 per 10 shares) on December 19. Next week, Huaxi Securities and Western Securities will distribute RMB 105 million (RMB 0.4 per 10 shares) and RMB 89 million (RMB 0.2 per 10 shares), respectively.
Notably, some brokerages have payout ratios exceeding 30%. For instance, Capital Securities' Q3 dividend accounted for 34.01% of its net profit in the first nine months of the year. The six brokerages mentioned reported year-on-year net profit growth for the first three quarters, with Huaxi Securities leading at a 316.89% surge.
Dividend frequency has also increased significantly. Western Securities has issued five cash dividend plans since 2024, totaling over RMB 500 million. Capital Securities, which previously only distributed annual dividends, has now introduced quarterly payouts, with its latest Q3 dividend doubling year-on-year to RMB 273 million. Similarly, Huatai Securities has expanded from annual to semi-annual dividends, distributing over RMB 6 billion in total since 2024.
While dividends are generally viewed positively by the market, Tian Lihui cautions investors to consider long-term fundamentals. Risks include uncertain stock price recovery post-dividend ("filling the gap"), potential underinvestment due to excessive payouts, and unsustainable high dividend ratios among smaller brokerages. Investors should focus on profitability and cash flow health when evaluating dividend sustainability.
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