China’s stock markets are undergoing a profound transformation as companies embrace shareholder returns through record dividends and share buybacks. This shift, driven by regulatory encouragement, signals a maturing market culture, one that aligns closer to global standards of corporate governance. The implications of this pivot are farreaching, as it seeks to rebuild investor confidence in a market that has been stagnant for years. Traditionally, China’s equity markets have been synonymous with growth-driven narratives, prioritising expansion over shareholder pay-outs. Companies would reinvest earnings or hoard cash, often at the expense of shareholder returns.

However, the current trajectory reveals a recalibration. Dividend yields on Chinese stocks have risen to an eight-year high, and share buybacks have reached unprecedented levels. These developments suggest a deliberate effort to reward patient investors who have weathered prolonged economic and geopolitical uncertainties. This cultural........

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