Companies listed on China's stock exchanges have distributed nearly 350 billion yuan in dividends ahead of the Spring Festival, setting a new record. Many investors have received cash returns, enhancing their confidence in long-term shareholding.

By the end of January, the total dividend payout before the holiday reached approximately 348.8 billion yuan, surpassing last year's level and hitting a new high. Industry experts note that under the guidance of new national policies and regulations from the China Securities Regulatory Commission (CSRC), the concentrated dividend distributions signal robust corporate operations and improve investor satisfaction through tangible returns.

Data shows that from December last year to the end of January, 235 listed companies on the Shanghai, Shenzhen, and Beijing Stock Exchanges paid dividends totaling 348.8 billion yuan in the two months leading up to the Spring Festival. This figure already exceeds the 344.6 billion yuan distributed in the same period last year. With additional payouts in February, the total is expected to grow further.

The financial and consumer sectors remained the primary contributors. Banks alone distributed 243.4 billion yuan, accounting for nearly 70% of the total. China Merchants Bank and Industrial Bank joined the pre-holiday dividend trend for the first time, distributing a combined 37.5 billion yuan. The insurance sector paid out 5.4 billion yuan, while 11 securities firms distributed 5.5 billion yuan. Major consumer giants such as Kweichow Moutai, Wuliangye, and Haitian Flavouring collectively paid 44.8 billion yuan.

Private enterprises also showed a significant increase in dividend willingness, with amounts doubling year-over-year. Dividends from private firms exceeded 61 billion yuan, a 130% increase from the previous year. Technology and industrial leaders like Foxconn Industrial Internet, Gree Electric Appliances, and Inner Mongolia Yili Industrial Group made their first pre-holiday dividend distributions, paying out 6.6 billion yuan, 5.6 billion yuan, and 3 billion yuan, respectively.

Market observers suggest that this year's later Spring Festival prompted many companies to advance their dividend schedules, allowing investors to benefit earlier from interest income and better plan their cash flow for the new year. The surge in pre-holiday dividends is seen as a result of both policy guidance and continuous improvements in corporate governance.

On one hand, the new "National Nine Articles" released in April 2024 emphasize strengthening supervision of cash dividends, enhancing their stability, continuity, and predictability, and promoting multiple annual dividends, pre-dividends, and pre-holiday distributions. In November of the same year, the CSRC's "Guidance on Market Value Management for Listed Companies" also encouraged firms to formulate and disclose medium- to long-term dividend plans, increase payout frequency, optimize timing, and reasonably raise dividend ratios.

Driven by these policies, an increasing number of listed companies have shifted toward proactive dividend policies, establishing long-term, stable, and predictable payout systems.

From a corporate governance and market value management perspective, pre-holiday dividends can reduce concentrated profit-taking and help stabilize share prices. Moreover, early and high-ratio distributions signal strong performance, ample cash flow, and sound governance, aiding in valuation recovery.

Overall, active dividend payments before the holiday are conducive to enhancing investor satisfaction and attracting long-term capital into the market.

In recent years, the CSRC has intensified policy support to encourage listed companies to strengthen investor returns, promote the use of cash dividends and share buybacks, and advocate for multiple annual dividends and pre-holiday distributions to reward shareholders tangibly.

To further optimize dividend arrangements, analysts recommend that listed companies explore multiple annual payouts and combinations of cash dividends and share repurchases to allow investors to share in corporate growth more promptly. Enhancing the transparency and predictability of dividend policies can also help stabilize market expectations. Additionally, firms should balance immediate returns with long-term development, tailoring payout ratios to their growth stages—maintaining investment during growth phases while increasing distributions during maturity.

By establishing clear dividend policies aligned with operational conditions and long-term goals, listed companies can stabilize investor expectations and foster a culture of long-term investment, enabling shareholders to grow alongside high-quality enterprises.