CHINA: SSE Revises Dividend Indices Series

Friday October 14 2022

On 13^th October 2022, the Shanghai Stock Exchange (SSE) revised SSE Dividend Index Compilation Plan, which attracted a lot of attention from investors and was well-received by the market. This time, the SSE further draws on the experience of revising the SSE Dividend Index and revises 32 index compilation plans, including the SSE 180 Dividend Index, to better meet the needs of investors for low-risk and stable-return investment, and guide the formation of long-term investment and value investment philosophy.

The investability and high dividend attributes of the revised dividend indices series have been further enhanced. On one hand, the sustainability requirements for cash dividends in the index sample have been improved, avoiding the problem of draining companies’ ability to continuously pay dividend due to high dividend payment rate. The indices series include companies that are able and willing to pay dividend continuously, hence enhancing the continuity of dividends. On the other hand, the weight setting rules have been refined, setting a lower weight ceiling for samples with a total market cap of less than 10 billion yuan, which further enhances the investment capacity and liquidity of the index while maintaining the high dividend yield positioning of the index.

The dividend indices series will better help investors invest in the securities of listed companies with high dividends while meeting the requirements of diversification, stability and tradability, and will become a useful measure to meet market demand and serve investors.

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