Jinwu Financial News | Infrastructure stocks were strong. CRRC (01766) surged 10.84%, China Railway (00390) rose 5.09%, China Communications Construction (01800) rose 4.3%, Times Electric (03898) rose 4.08%, China Railway Construction (01186), China Metallurgical (01618), China Tonghao (03969), and Guangshen Railway (00525) all rose more than 3%.
China Post Securities said that the new “National Nine Rules” of the capital market proposes to strengthen the supervision of cash dividends for listed companies, increase incentives for companies with high-quality dividends, and take more measures to promote higher dividend rates and enhance the stability, sustainability and predictability of dividends. The introduction of this policy may benefit the long-term performance of high-dividend assets in the transportation sector. The bank believes that some high-quality listed companies for long-term highways and railways have both weak cyclicality and high dividend attributes. As risk-free returns continue to decline in the entire market, they are still expected to generate excess profits.
Guojin Securities said that the National Development and Reform Commission issued the “Administrative Measures on Infrastructure and Utility Franchises”, and the new regulations suggest that “the franchise period shall not exceed 40 years in principle”, which is 10 years longer than “in principle no more than 30 years” in 2015. On April 12, the national nine articles were officially released. Regarding dividends, the nine regulations state that “supervision of cash dividends from listed companies should be strengthened. For companies that have not paid dividends for many years or that have a low dividend ratio, the majority shareholders are restricted from reducing their holdings and implementing risk warnings. Increase incentives for companies with high-quality dividends, and take more measures to promote higher dividend rates.”