Chines companies are racing to attract foreign investors using dividends as the main attraction report Excon Fuji Securities.
TORONTO, April 6, 2017 /PRNewswire/ -- Investors who prefer dividends over growth should act quickly because high dividends look like is here to stay, yield is not. "These days Chinese stocks look cheap when considering the dividends. It pays, but investors have noticed and they started holding high dividends stocks which in turn increasing its price leading to lower yield," said Daniel Sharp, Head of Corporate Trading at Excon Fuji Securities.
Beijing and Shanghai are still outperforming their European and American counterparts; even though companies have been beating the index every year since 2013.
Charles Hall, Director of Corporate Equities at Excon Fuji Securities, commented: "The new move introduced to attract foreign investors is working. There has been a high demand from European counterparts due the saturated markets closer to home; so in theory it comes as no surprise."
Despite its reputations, Chinese stocks have become some of the most generous companies, overtaking Europe and the US. Aided by the payouts, the Shanghai Dividends Index rose 8%.
However, it seems that the pressure from the shareholders is getting results. Now investors are buying into China because of the yields as opposed to economic outlook, said Lilian Leung, a Fund Manager for JPMorgan Asset Management.
"As Chinese economy growth slows, Chinese companies have adapted western strategies for attracting investors and started paying dividends," said Mitchell Newman, Senior Vice President at Excon Fuji Securities.
China will bring more and more opportunities for dividends to be cultivated, a natural development in the Emerging Markets.
About Excon Fuji Securities
Excon Fuji Securities is a long-established private international investment brokerage. Providing private retail and corporate clients a broad range of financial markets and instruments. With over $7 billion (USD) under management and growing, our vision is to become a renowned industry leader in investment services throughout North America, Europe, Asia-Pacific and Australasia.
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SOURCE Excon Fuji Securities