(Yicai Global) May 25 -- Chinese mainland-listed firms paid out record dividends exceeding CNY1 trillion (USD106 billion) in dividends last year, as more firms followed the state financial regulator's suggestions to share bigger portions of their profits with shareholders.
The value of total dividends issued rose by CNY1 billion (22 percent) annually, Shanghai bourse operator China Securities Regulatory Commission said in a statement, adding that a total of 2,754 firms made payouts.
CSRC has actively encouraged listed companies to distribute dividends because it boosts trust among shareholders while holding back on profit-sharing instead raises suspicions of a firm's financial health.
Some 38 out of 199 companies started making payouts to shareholders last year, reported the Shanghai Stock Exchange, adding that dividend rates for 20 of those firms exceeded 30 percent of profits.
The number of firms with dividend ratios higher than 50 percent, has risen by one-fifth to 128 companies, compared with the previous three years. The number of those offering ratios exceeding 30 percent has risen 14 percent to some 660 companies.
Editors: Emmi Laine, William Clegg