China's listed firms to pay record high cash dividends to investors: report

China's domestically listed firms said they plan to pay record high dividends in cash to investors for the 2005 fiscal year, according to the latest edition of Shanghai Securities News.

The companies planned to offer 73.2 billion yuan (about 9.15 billion US dollars) in cash dividends to public investors, a record high.

The paper noted that companies paid 72.2 billion yuan in cash dividends in 2004.

More than half of the country's domestically listed firms that have published their annual 2005 business reports have announced plans to pay dividends to public investors,

The newspaper acknowledged that 635 of 1,191 domestically listed firms that published their business reports have made public their plans to pay dividends, or 53.32 percent.

Stable growth in business in the past year laid a solid basis for them to pay dividends, while China's ongoing State share reform and regulatory policy inspire listed firms or major shareholders to pay dividends to investors, according to the report.

By April 27, 1,191 firms listed on the Chinese mainland stock markets posted an average profit growth of 5.04 percent in 2005 year on year, as against nearly 30 percent in 2004.

Source: Xinhua