Chinanews.com, December 12 According to the website of the China Securities Regulatory Commission, in order to further improve the normalized dividend mechanism of listed companies and improve the level of investor returns, the China Securities Regulatory Commission issued the "Regulatory Guidelines for Listed Companies No. 15 - Cash Dividends of Listed Companies" (hereinafter referred to as the "Cash Dividend Guidelines") and the "Decision on Amending the Guidelines for the Articles of Association of Listed Companies" (hereinafter referred to as the "Articles of Association Guidelines"), which will come into force on the date of promulgation. The Shanghai and Shenzhen stock exchanges simultaneously revised and improved the standardized operation guidelines and clarified the operational requirements.
There are three main aspects of the amendments to the Cash Dividend Guidelines:
The first is to further clearly encourage the orientation of cash dividends and promote the improvement of dividend levels. Strengthen disclosure requirements and other institutional constraints for companies that do not pay dividends, and urge dividends. Focus on the supervision of companies with more financial investment but low dividend levels, supervise and urge them to increase the level of dividends, and focus on their main business.
The second is to simplify the medium-term dividend procedure and promote the further optimization of the dividend method and rhythm. Encourage companies to increase the frequency of dividends when conditions permit, and in combination with regulatory practices, allow listed companies to review and approve the conditions and upper limits of interim cash dividends for the next year within a certain amount when convening annual shareholders' meetings to review the annual profit distribution plan, so as to facilitate companies to further increase the frequency of dividends, so that investors can better plan capital arrangements and share corporate growth dividends earlier.
The third is to strengthen the constraints on enterprises with unusually high proportion of dividends and guide reasonable dividends. It is emphasized that when formulating cash dividend policies, listed companies should comprehensively consider their own profitability, capital expenditure arrangements and debt repayment ability, and take into account investor returns and company development. Maintain close attention to companies with high asset-liability ratios, poor cash flow from operating activities, and large proportion of cash dividends to prevent adverse effects on the production and operation of enterprises and their ability to repay debts.
There are two main aspects of the amendments to the relevant provisions of the Bylaws Guidelines:
The first is to encourage listed companies to increase the frequency of cash dividends, guide the formation of medium-term dividend Xi, and stabilize investors' dividend expectations. At the same time, the time limit for the completion of interim dividends has been increased.
The second is to urge the company to refine the dividend policy in the articles of association, clarify the target of cash dividends, and better stabilize investors' expectations. At the same time, guide the company to formulate dividend binding clauses in the articles of association to prevent enterprises from implementing dividends under the circumstances of untrue profits.
The implementation of the Guidelines on Cash Dividends and the Guidelines on the Articles of Association will help promote listed companies to enhance investor returns, better guide companies to focus on their main businesses, and promote the stable and healthy development of the market. In the next step, on the basis of respecting the autonomy of companies, the CSRC will better play the guiding and restraining role of supervision, promote listed companies to continuously enhance their awareness of dividends, optimize dividend methods, cultivate dividend Xi, improve dividend levels, and at the same time restrain abnormal dividends, so as to promote the overall dividend level of listed companies to rise steadily.