Eternally Grateful
Well-Known Member
If they can devalue the dollar. they have prety much destroyed the US economy,It looks to me like China is trying.
American banks are in trouble. Banks around the world are. China's banks can't be thriving either but they're backed by the government; and China is obviously trying to draw foreign investors into buying stocks in Chinese banks since they posted higher dividends. Strange indeed that when American banks are reducing dividends, Chinese ones are raising theirs.
May 4, 2020 China keeps dividends flowing as coronavirus crushes payouts globally
Chinese state-backed companies’ have stepped up dividend payouts in sharp contrast to companies in Europe and the US who are hoarding cash to see them through the coronavirus pandemic. This relative largesse has attracted the attention of yield-seeking investors.
Beijing’s long-term push to attract institutional investors is paying dividends this year as many state-owned enterprises (SOEs) maintain, or even raise their payouts, fund managers said.
Even as the world’s second-largest economy suffered its first quarterly contraction since 1992, fund managers said they are snapping up Chinese stocks in the telecoms, banking and energy sectors for their generous dividend payouts.
“Big dividend payers tend to include the largest SOEs, which are often financial firms, energy producers and real estate developers with cyclical profits,” said Catherine Yeung, an investment director at Fidelity International based in Hong Kong.
State-owned China Mobile bumped up its 2019 full-year dividend payment by about 1 per cent year-on-year despite a 9.5 per cent fall in net profits. Among financial stocks, China Merchants Bank, raised its dividend payout to 33 per cent from 30 per cent. Ping An Bank said in its 2019 results announcement that it plans to pay out not less than 40 per cent of its profit in 2020, up from a previously set range of 10-30 per cent. Chinese banks have either state-backed or central bank-backed shareholders.
It seems clear to me that the Chinese government is going into more debt itself in order to draw investors to China and away from the US and Europe.
this would benefit china and europe