(Yicai) Aug. 27 -- Companies listed on the Chinese mainland plan to hand more than CNY160 billion (USD22.5 billion) in dividends for the first half of this year.

Some 373 Chinese mainland-listed firms have announced plans to distribute interim dividends as of Aug. 25. Their number surged from 186 in 2021, 138 in 2022, and 194 last year after China's securities regulator advocated the distribution of more dividends earlier this year.

Telecoms carrier China Mobile plans to give about CNY51 billion (USD7.2 billion) worth of dividends to shareholders and mining giant Zijin Mining Group over CNY2.6 billion (USD365 million), while Ping An Bank, China Unicom, Shanghai Rural Commercial Bank, and Henan Shuanghui Investment & Development each intend to give more than CNY2 billion.

Chinese mainland-listed firms should increase dividend distribution and repurchase efforts, Wu Qing, chairman of the China Securities Regulatory Commission, said on Aug. 25. They should also make comprehensive use of mergers, acquisitions, restructuring, stock ownership plans, and other means to increase investment value, he added.

With the effective guidance of regulatory policy and listed firms' improved performance and increased profitability, the number of companies handing dividends will likely continue to surge, Tian Lihui, director at Nankai University's Institute of Finance and Development, said to Yicai.

To attract and keep investors, who will increasingly value cash returns, listed firms will actively engage in market value management and proactively distribute more dividends, Tian pointed out.

However, giving dividends will reduce a firm's internal fund and impact its potential for future expansion and re-investment, Tian said. Listed companies should not sacrifice financial health and debt-paying ability for dividends, while investors must assess firms' asset and liability conditions, he noted.

Editors: Shi Yi, Martin Kadiev