As Chinese Stocks Struggle, Owning Boring Ones Has Paid Dividends

According to a report, it has been challenging to generate profits from Chinese stocks, with even the country’s tech giants underwhelming investors in recent years. However, investors who focused on dividends from some of China’s less favored companies fared much better. Over the last three years, listed Chinese companies have provided shareholders with more than two trillion yuan ($275 billion) in cash returns, primarily through dividends. In addition to dividends, stock buybacks have also increased. The MSCI gauge, tracking Chinese stocks with high dividend yields, outperformed the broader MSCI China index by 28 percentage points during this period.