Why are listed companies in China profitable but unwilling to pay dividends

If a listed company is not profitable, it is really impossible to pay dividends. And some listed companies clearly make profits, but refuse to pay dividends. For example, Jinbei Automobile (600609) and Zhongyida (6006 10) have not paid cash dividends since their listing in 1992, which is such a company. Since dividends are decided by the board of directors, minority shareholders have no right to decide. They would rather use profits to open branches or do new projects than pay dividends. This makes the A-share market have many "iron cocks".

The regulatory authorities have regulations on dividends paid by listed companies. In 2008, the CSRC required that "the accumulated profits distributed in cash or stock in the last three years should not be less than 30% of the average annual distributable profits realized in the last three years". In 20 13, the Shanghai Stock Exchange also issued the Guidelines for Cash Dividends of Listed Companies, requiring listed companies with cash dividends below 30% to fulfill stricter information disclosure obligations. On August 3, 2065438, the CSRC, the Ministry of Finance, the State-owned Assets Supervision and Administration Commission and the China Banking Regulatory Commission jointly issued the Notice on Encouraging the Merger and Reorganization of Listed Companies, Cash Dividends and Share Repurchase. However, these requirements and notices are not mandatory. Can they be implemented? It's really worrying. (Related content is taken from the network)