Chinese companies paid out a record 2.4 trillion yuan (US$ 328 billion) in dividends in 2024, and estimates suggest another year of record-high dividends in 2025.
After decades of lagging their Western counterparts, Chinese companies have stepped up their dividend payouts. As of April 2025, the average dividend yield of constituents on China’s benchmark CSI 300 Index reached 2.7 percent, the highest level in nearly a decade and double that for the S&P500 index1.
Policy push
At the heart of this dividend boom is the Chinese government’s push for better corporate governance amid attempts to boost investor confidence in domestic equities. Measures for encouraging firms to return more capital to shareholders include:
- Pressure on state-owned enterprises (SOEs) to increase the size and regularity of their dividend payouts
- Greater supervision for listed companies that have paid low or no dividends for many years
- Favourable tax policies to encourage firms to increase dividends and share buybacks
- A 300 billion yuan relending programme to help companies finance share buybacks
Larger firms lead the way
Large-cap Chinese companies, especially those under central government control, are leading this charge.
State-owned Industrial & Commercial Bank of China (ICBC) announced a cash dividend for the year-end 2024 amounting to CNY 1.646 per 10 shares. Agricultural Bank of China, another state-owned bank set its end-2024 dividends at CNY 1.164 per ten ordinary shares. This takes their annual dividend yield to above 4 percent, and suggests a focus on improving shareholder value.
Meanwhile, China’s large-cap private companies, particularly those with strong, high-quality business models, are well-positioned to deliver attractive dividends. For example, top liquor producer Kweichow Moutai one of China largest companies, announced an attractive dividend yield of 3.2 percent in December 2024. The company has a long track record of paying healthy dividends, and has been growing its distributions at 30 percent per annum since 2014.
Contemporary Amperex Technology (CATL), the world’s largest EV battery manufacturer, announced it would distribute 50 percent of its 2024 net profit as dividends, comprising a 20 percent regular annual dividend and a 30 percent special dividend. Its current annual dividend yield is 2.1 percent.
Which China index has constituents that offer the highest dividend yield?
Investors looking to leverage this reset in the China equity market towards higher dividends may want to do so via an exchange traded fund (ETF).
There are many China ETFs listed in Singapore that track a variety of indices. Their average dividend yields can differ significantly depending on the number of stocks, market cap, and sector exposure of each index.
Here is a comparison of China’s benchmark CSI 300 Index and other China indices tracked by the broad-based China ETFs listed in Singapore2. Given its large cap, domestic focus, the FTSE China A50 Index stands out in terms of weighted average dividend yield from its constituents.
Fig 1: Average dividend yield of select China indices
| FTSE China A50 | CSI 300 | MSCI China A50 Connect | MSCI China | Hang Seng Stock Connect China 80 Index |
| 3.5% | 2.7% | 2.6% | 2.3% | 3.1% |
Source: FTSE Russell, MSCI, Hang Seng Index, Bloomberg, as of 30 April 2025
Paying dividends helps stabilise prices
There is also evidence that paying dividends helps stock performance, especially during market downturns. In general, dividend paying companies tend to be larger companies with sound cashflows. Investors are also less likely to offload their dividend paying stocks during periods of short term market volatility.
This also holds true for Chinese dividend stocks. Notably, in the face of China’s economic restructuring and trade wars with the US, indices such as the FTSE China A50 Index, which is comprised of the 50 largest China A-share companies, has outperformed the broader CSI 300 Index over the past few years.
Fig 2: Calendar year index returns (%)
| 2022 | 2023 | 2024 | April 2025 | |
| FTSE China A50 Index | -22.4 | -12.2 | 22.4 | -4.4 |
| CSI 300 Index | -26.9 | -12.4 | 18.8 | -5.8 |
Source: FTSE Russell, Bloomberg, as of 30 April 2025. Performance data source: Data for FTSE China A50 Index from Bloomberg, as of 30 April 2025, SGD basis, with dividends and distributions reinvested, if any. CSI 300 data sourced from Morningstar, as of 30 April 2025, SGD basis, with dividends and distributions reinvested, if any. Past performance is not necessarily indicative of future performance.
Chinese equities as a source of regular income
Chinese large-cap stocks present an opportunity for Singapore investors seeking to diversify beyond local and developed markets. But aside from their capital return potential, these companies now also offer solid dividend yields comparable with the developed markets.
The regulatory push for better shareholder returns suggest that a strong dividend culture is taking root among Chinese companies. This structural shift positions Chinese stocks not just as a growth story, but as source of income in a diversified portfolio.
More on the UOBAM FTSE China A50 Index ETF (SGX: JK8)
Investors can gain exposure to the FTSE China A50 Index by investing in the UOBAM FTSE China A50 Index ETF (SGX: JK8). The ETF is listed on the Singapore Exchange (SGX) and offers trading in SGD using cash and/or SRS funds.
| Fund Name | UOBAM FTSE China A50 Index ETF |
| Investment Objective | The investment objective of the ETF is to replicate as closely as possible, before expenses, the performance of the FTSE China A50 Index. |
| Trustee | State Street Trust (SG) Limited |
| Stock Exchange | Singapore Exchange Securities Trading Limited |
| Listing Date | Listed as the United SSE 50 China ETF on 26 November 2009. Effective switch to UOBAM FTSE China A50 Index ETF on 25 March 2025 |
| Management Fee | Currently 0.45% p.a. |
| Number of Index Constituents | 50 |
| Distribution Policy | Distributions are at the sole discretion of the Managers. Currently, we intend to make annual distributions around December each year as at such date as we may from time to time determine. Distributions may be made out of income, capital gains and/or capital. |
| Currency Classes | Class SGD Units (Primary Currency: SGD | Secondary Currency: USD) |
| SGX Stock Code | Units traded in SGD: JK8 | Units traded in USD: VK8 |
| Designated Market Maker | Philip Securities Pte Ltd |
1Source: Bloomberg, as of 30 April 2025
2Source: List of broad-based China indices from “Navigate China market opportunities through SGX's exchange-listed products”, SGX
| If you are interested in investment opportunities related to the theme covered in this article, here is a UOB Asset Management Fund to consider: You may wish to seek advice from a financial adviser before making a commitment to invest in the above fund, and in the event that you choose not to do so, you should consider carefully whether the fund is suitable for you. |
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