Breaking through 2 trillion yuan! Shenzhen Market's dividends shift from a "dividend wave" to "normalization"

Dividends Moving Toward “Normalization”

The 2026 government work report states the need to continue deepening comprehensive reforms in the capital market’s investment and financing, vigorously promoting the entry of medium- and long-term funds into the market. The new “Nine Regulations” require strengthening the supervision of cash dividends by listed companies. CSRC Chairman Wu Qing pointed out at the March 6 economic-themed press conference that efforts will be made to achieve qualitative improvements and reasonable quantitative growth in the capital market, striving for five new enhancements, including promoting listed companies to improve governance, strengthen dividends and buybacks, and continuously enhance investment value and investor returns.

Currently, Shenzhen-listed companies’ cash dividends have entered a new stage of “normalization.” As of 2025, the total cash dividends of Shenzhen-listed companies exceeded 540 billion yuan; during the 14th Five-Year Plan period, cumulative dividends surpassed 2 trillion yuan, continuously rewarding investors and building a healthy “financing—development—return” cycle in the capital market.

Institutional Empowerment: From “Periodic Boom” to “Institutionalized Normalcy”

In 2025, the mid-term dividend payout of Shenzhen companies reached 138.094 billion yuan, a nearly 30% increase year-on-year. Under the combined efforts of active regulatory guidance, proactive corporate practices, and healthy market interactions, the dividend ecosystem in Shenzhen continues to optimize. Besides annual reports, mid-term dividends are becoming an important way for Shenzhen companies to shorten return cycles and enhance investor satisfaction. For example, on February 5, 2026, Luxshare Precision announced its 2025 interim dividend plan, marking its first mid-term dividend since listing in 2010, distributing 1.6 yuan per 10 shares, with a total cash dividend of about 1.165 billion yuan, delivering a “cash red envelope” to investors before the Lunar New Year.

More and more listed companies are revising their articles of incorporation to develop medium- and long-term dividend plans, optimizing review procedures for interim dividends, further increasing transparency and predictability, and stabilizing investor return expectations. In 2024, 216 Shenzhen-listed companies issued “2024–2026 Shareholder Dividend and Return Plans”; in 2025, an additional 165 companies announced dividend plans for the next three years, conveying clear and stable dividend signals through institutional documents. Additionally, 130 companies, around the time of their 2024 annual report disclosures, also formulated 2025 interim dividend plans, integrating mid-term dividends into their overall annual profit distribution plans, actively maintaining stable dividend frequency, and shortening investment return cycles.

Expanding the Camp: Stable Dividend Groups Continue to Grow

The long-term dividend-paying companies in Shenzhen continue to expand, with over a thousand companies paying cash dividends for three consecutive years, gradually forming a pattern of long-term, sustained, and stable returns.

Companies like CATL, Wuliangye, Gree Electric, Midea Group, BYD, and Ping An Bank paid over 10 billion yuan in dividends in 2024. Among them, Midea Group’s total dividends in 2024 accounted for 69% of net profit. Since its overall listing in 2013, Midea has continuously issued shareholder return plans, with cumulative cash dividends exceeding 137 billion yuan. In its “Shareholder Return Plan for the Next Three Years (2025–2027),” Midea clearly states that, when eligible, it will implement two cash dividends per year, with cash distributions not less than approximately 30% of the average distributable net profit over the past three years.

Notably, private enterprises actively participate in cash dividends. Among Shenzhen companies distributing cash red envelopes before the Spring Festival, nearly 60% are private enterprises, with total payouts exceeding 8 billion yuan. The average dividend per private company exceeds 120 million yuan. Leading companies like Luxshare Precision and Tianshan Aluminum have released announcements on their 2025 interim or mid-term dividend plans, demonstrating their strong commitment to actively rewarding investors.

Performance Backing: “Red Envelope Rain” Supported by Strong Fundamentals

Steady performance is the core confidence behind cash dividends. Currently, Shenzhen companies are gradually disclosing their 2025 annual reports, and a new round of “red envelope rain” is on the way.

On March 6, 2026, Desay SV disclosed its 2025 profit distribution plan, proposing a cash dividend of 12.50 yuan per 10 shares, totaling 742 million yuan in cash dividends, accounting for 30.25% of net profit attributable to the parent in 2025. High returns are supported by high growth; the company focuses on intelligent cockpits, intelligent driving, and connected services, achieving revenues of 32.557 billion yuan and net profits of 2.454 billion yuan in 2025, representing year-on-year increases of 17.88% and 22.38%, respectively. On the same day, Shanjin International also announced its 2025 profit distribution plan, offering a cash dividend of 4.8 yuan per 10 shares, with total cash dividends of 1.332 billion yuan, accounting for 44.82% of net profit attributable to the parent in 2025, sharing the company’s growth results with all shareholders through high cash dividend ratios.