To The Moon

A-share listed companies are now entering the peak period for implementing their semi-annual dividend plans. According to Wind data, as of August 31, 867 companies have announced interim cash dividend proposals for 2026, with total planned payouts reaching 716.75 billion yuan, setting a new record high for the number of companies opting for interim dividends.

Fu Yifu, a special researcher at Su Shang Bank, noted that the significant increase in both the number and total scale of interim dividends is a result of multiple factors, including regulatory guidance, improved corporate profitability, and a stronger awareness of shareholder returns. He added that this also reflects a profound shift in the dividend ecosystem of the A-share market. As the reporting season draws to a close, the list of companies paying interim dividends is expected to expand further, pushing the full-year payout total to a new level.

An analysis of the announced plans shows that these mid-year payouts are broad in scope, strong in magnitude, and led by industry giants. Multi-billion-yuan dividend packages are largely concentrated in state-owned enterprises and sector leaders with robust cash flows, including China Mobile, China Telecom, China Petroleum & Chemical Corp (Sinopec), Ping An Insurance, and Zijin Mining, all of which have exceeded the 10-billion-yuan mark. Major players like CITIC Securities, Contemporary Amperex Technology Co Ltd (CATL), and Hikvision are also on the list.

Institutional Drivers Accelerate the Normalization of Dividend Payments

The new "National Nine Measures" have intensified oversight of cash dividends, promoting models like "multiple dividends per year, advance dividends, and pre-Spring Festival dividends." Supporting regulations and market value management guidelines have been introduced, imposing restrictions such as limiting major shareholder stake reductions and issuing risk warnings for companies that have failed to pay dividends for years or have low payout ratios. Additionally, since January 1, 2025, China Securities Depository and Clearing Corp has halved handling fees for A-share dividend payments, transforming proactive shareholder returns from a "voluntary act" into an institutionalized mechanism.

Sector-wise, telecommunications operators, insurers, oil and petrochemicals, non-ferrous resources, and brokerages are the primary drivers of these interim dividends. Among leading brokerages, CITIC Securities, Guotai Haitong, and CITIC Construction Investment have announced payouts of 6.67 billion yuan, 5.25 billion yuan, and 2.25 billion yuan, respectively. CATL announced a dividend of 14.11 yuan per 10 shares, totaling 6.18 billion yuan, leading the Shenzhen market. Hikvision proposes paying 5.50 yuan per 10 shares, totaling 5.04 billion yuan, ranking second in Shenzhen. Key payouts on the Shanghai market include China Mobile (2.51 yuan per share, totaling 54.43 billion yuan) and Industrial and Commercial Bank of China (1.511 yuan per 10 shares, totaling 53.85 billion yuan).

Fu Yifu explained that from a regulatory perspective, the focus is on guiding listed companies to strengthen cash dividends and encouraging those that are able to conduct interim ones, moving away from the past model of a single year-end distribution. This approach brings forward annual returns, letting investors share in corporate performance earlier and serving as a key measure to improve shareholder return mechanisms. From a corporate viewpoint, some companies have seen improved operating cash flow and sufficient book funds, giving them the financial capacity for such dividends. Committing real capital to interim dividends also signals management's confidence in operational stability and future cash flow. A high interim dividend ratio serves as a method for companies to communicate their fundamental strength to the market, which can bolster overall confidence.

From a market perspective, interim dividends increase cash returns for investors, making them attractive to long-term and institutional funds. This helps cultivate value investing principles and refine the A-share investment ecosystem. Bai Wenxi, vice chairman of the China Enterprise Capital Alliance, views this wave of interim dividends not as an isolated event but as a sign of the A-share market's dividend culture shifting from sporadic cases to a normalized system. The structure of the payouts is telling: with China Mobile, Ping An Insurance, China Telecom, Sinopec, and Zijin Mining each exceeding 10 billion yuan, and leaders like CATL, Hikvision, and CITIC Securities following suit, the bulk is concentrated in central state-owned enterprises and industrial leaders with strong cash flows, low debt, and mature business models. This sends three signals: first, the A-share market's pricing anchor is now incorporating "deterministic cash returns" alongside "current growth expectations"; the bond-like nature of dividend-yielding assets is being re-evaluated by insurers and pension funds in a low-interest-rate environment. Second, interim dividends bring shareholder rewards forward, which can help curb speculation and attract long-term capital. Third, it is a way for quality companies to back their fundamentals with tangible cash.

867 Companies Announce Over 710 Billion Yuan in Planned Payouts

With the semi-annual reporting season complete, a broader set of interim dividend plans has emerged. Wind data shows that as of August 31, a total of 867 A-share companies have proposed interim cash dividends for 2026, with the combined value reaching 716.75 billion yuan. The number of companies participating has set a new historical high, up from just over 100 in 2022, over 180 in 2023, more than 700 in 2024, 852 in 2025, and now 867 in 2026.

In detail, China Mobile's proposed 54.43 billion yuan payout is the largest, representing over 68% of its first-half net profit. Industrial and Commercial Bank of China has proposed 53.85 billion yuan. The six major state-owned banks have all set their interim payout ratios at 31%, with a combined payout of approximately 220.99 billion yuan. The "Three Barrels of Oil"—PetroChina, Sinopec, and CNOOC—together plan to distribute 99.07 billion yuan.

Notably, growth-oriented companies in the artificial intelligence and new energy supply chains are appearing on the interim dividend list, with some significantly increasing their payout amounts, altering the previous structure dominated by cyclical blue-chips. For instance, Zhongji Innolight plans a mid-year payout of approximately 1.4 billion yuan, more than three times its amount for the same period last year. Yangtze Optical Fibre and Cable proposes to distribute 878 million yuan.

Fu Yifu cautioned that interim dividends are not a simple positive. Paying dividends reduces a company's book retained earnings and cash reserves. If a company blindly follows the trend, it could crowd out funds needed for expansion, R&D, and risk mitigation, potentially harming long-term development. Interim dividends should not become a hard requirement; the key is to act within one's means. Quality dividends need to be matched with stable earnings and reasonable capital expenditure, balancing shareholder returns with retaining "ammunition" for business growth. While interim dividends will become a regular supplement to the A-share market as the system improves, they will not entirely replace year-end distributions.

Bai Wenxi also offered advice to investors, warning not to equate "paying more" with being a "good company." He suggests a two-part assessment: genuine dividends should be evaluated based on whether free cash flow can cover operating and capital expenditures, whether the dividend payout ratio is healthy relative to net profit, and whether payments are consistent and predictable. There are two types of "false signals" to watch for: one is a passively high dividend yield caused by a significant stock price decline while fundamentals deteriorate; the other is an overextended or "clear-out" dividend paid to appease rules or support valuations, ultimately harming the company's future principal.

"The expansion of interim dividends is a positive step in rebalancing A-share investment and financing," Bai Wenxi said. "Divergence will intensify in the future: mature leaders will incorporate dividends into their shareholder return plans, while growth companies should maintain flexibility between reinvestment and payouts. For investors, it's fine to shift dividend stocks from a thematic play to a core holding, but stock selection must still involve a deep look at cash flow, payout ratios, and industry cycles."

Zhang Xiaoxi, secretary-general of the CASS Research Center for the Corporate Governance of Listed Companies, believes listed companies should pay more attention to balancing dividends with reinvestment in the future. Growth-stage companies should not over-squeeze R&D investment and capital expenditure just to please the market, while mature companies should proactively increase payout ratios to continuously enhance investor returns. Yan Xiang, chief economist at Founder Securities, stated that as capital market investment and financing reforms continue, the overall profitability and willingness to pay dividends of listed companies have improved, thereby enhancing investor returns. This helps solidify the market's operational foundation and boost its internal stability.

This news is for reference only and does not constitute investment advice.