The interim dividend payout ratio of China's six major state-owned listed banks has collectively risen to 31% for the first time, as A-share listed banks enter an intensive period of implementing interim dividends. The six plan to distribute a total of about CNY 220.989 billion in cash dividends, a new historical high.
Until now, the large state-owned banks' interim payout ratio had been held at 30% for a long time. Moving together to a uniform 31% is the first such step.
BANK SHARES RISE IN A FALLING MARKET
Bank stocks gained on 27 October 2026 while the broader market corrected. The bank index was up 1.3% as of 13:58.
Among the index components, a Shanghai rural commercial bank rose 4.2% and a Chongqing city bank rose 3.7% on the same day.
RESEARCHERS LINK DIVIDENDS TO LOWER RATES
Researchers at a securities firm said China's domestic risk-free interest rates are undergoing a downward shift in their central level. In that environment, they said, high-dividend assets have moved from thematic allocation to core holding tools.
The researchers added that the banking sector combines high dividends with stabilising fundamentals. As a result, they said, its allocation value for safe-haven and medium-to-long-term capital is increasingly prominent.
THE INDEX AND A TRACKING FUND
The index covers leading A-share listed banks. Its components include joint-stock banks, large state-owned banks, city commercial banks and rural commercial banks, and it is characterised by both high dividends and steady growth.
A bank exchange-traded fund with the code 516310 (feeder fund A/C: 161121/009860) tracks the index. Its annual management fee is 0.15%, which allows investors to take exposure to the banking sector at low cost.