Shanghai targets dividend development

Shanghai Stock Exchange is urging local firms to raise dividend payouts in a drive to promote healthy market development, although its impact is not expected to be felt for some time. The bourse just released draft guidance in which it pledges to support company refinancing or M&A activity either when they pay over 50% of profit as cash dividends, or the proportion of the dividend to net assets beats one-year interest rates from the People’s Bank of China. As an extra incent…