Liu Shiyu, Chairman Of The SFC, Emphasized "Cash Dividends" Directly "Platform".

Since China launched Shenhua's distribution plan in March 18th this year, the cash dividends of listed companies have always been highly valued by management.

At the second member conference of the association of listed companies held in April 8th, Liu Shiyu, chairman of the securities and Futures Commission, was directly on the platform, emphasizing the importance of paying dividends in cash.

Liu Shiyu said that the cash dividends of listed companies are the basic way to repay investors, which is the proper meaning of the stock company system and the source of the stock's intrinsic price.

Liu Shiyu emphasized that the return of stock price rise is not the profits given by the listed companies, but the proceeds from the pfer of potential premium by investors.

Liu Shiyu pointed out that the growth of the company is uncertain. Some listed companies do not pay dividends when they are better off. They blindly shop their projects, and wait until the completion of the project, the economic downturn, and the big losses.

In addition, Liu Shiyu also said that continuous and stable cash dividends are often the signals of the stable financial and operating conditions of listed companies. Conversely, the company's long-term non legitimate reasons for not paying dividends may also be a signal for financial data fraud and insider control.

It should be said that Liu Shiyu's concern about cash dividends is correct.

In particular, Liu Shiyu said, "the company has no legitimate reason for not paying dividends for a long time, and it may also be a signal for financial data fraud and insider control".

The key to the company's dividend.

This also shows that Liu Shiyu has a detailed understanding and Research on the dividends of listed companies.

However, from Liu Shiyu's attention to cash dividends and the recent attitude of the SFC in dealing with the cash dividends of listed companies and the treatment of "iron chicken", Liu Shiyu and the SFC obviously neglected an important issue.

It should be said that management's emphasis on cash dividends is aimed at increasing the returns of investors, but the problem is that

Whether it can repay investors is obviously ignored by Liu Shiyu and management.

This does not seem to constitute a problem.

The cash dividends of listed companies are, of course, a reward for investors.

But the problem is that the A share market is a very "wonderful" market. Many of the things that matter of course are not taken for granted in the A share market, and many unlikely events happen on the A share market.

For example, cash dividends are clearly given to investors in the eyes of management, but in fact they can not give investors returns.

On the contrary, the more cash dividends issued by listed companies, the greater the loss of investors.

Under these circumstances,

Of course, it won't take dividends.

Even a listed company might not be better off.

The reason why "the more cash dividends of listed companies and the greater the losses of investors" appear is the phenomenon of "wonderful flowers", which is obviously based on the dividend tax.

Dividend tax is currently levied differently.

A dividend tax is withdrawn from holding stocks for more than a year, with a dividend tax of 10% for a full month or less, and a dividend tax of 20% a month.

Under normal circumstances, investors rarely hold shares for more than a year, which means that most of the small and medium investors need to pay red profits tax.

As a result, the problem of investment losses caused by cash dividends also follows.

Take China Shenhua as an example, the stock is 2.97 yuan per share.

If we impose a 10% dividend tax on investors, if Shenhua stock price is 22.97 yuan on the date of dividend registration.

Through the ex dividend treatment, the benchmark price of the Shenhua dividend rate in China was 20 yuan, and the other 2.97 yuan became the cash dividend of Shenhua in China.

So the total wealth of investors has not changed.

However, since the dividend tax is payable at 10%, or 0.297 yuan per share, this means that after a cash dividend, the investor actually lost 0.297 yuan per share.

If China Shenhua does not pay dividends, investors will not lose the bonus tax.

This is the reason that the more cash dividends the listed companies have, the greater the loss of investors.

Under such circumstances, how can investors praise the high praise of China Shenhua? From a regulatory point of view, Liu Shi Yu's praise for China's Shenhua's high profile and its emphasis on cash dividends is certainly very desirable.

However, the SFC must face up to the fact that the more the listed companies are sending cash, the greater the losses will be for investors.

If this problem can not be solved, even if the amount of dividends paid by listed companies is more, that is not the return on investment for small and medium investors.

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