MNI China Press Digest Feb 11: Dividends, Fiscal, Monetary

Highlights from Chinese press reports on Wednesday:

• China’s final trading week ahead of the Spring Festival saw an increase in shareholder pay outs, with 35 A-share listed companies implementing dividends totalling more than CNY190 billion, according to Yicai. Tian Lihui, dean at Nankai University, said the wave of Spring Festival “red envelopes” underscores the prioritisation of shareholder returns and aligns with regulatory initiatives. Tian cautioned, however, that investors should assess whether a company’s cash flow and profitability are sufficient to support payments. Tian noted that regulators have maintained pressure on so-called “iron roosters”—companies that consistently refuse to pay dividends—through ongoing inquiries, thereby enhancing transparency and stability in the A-share market.
• China will accelerate the use of various funds in 2026, as the year marks the start of the 15th Five-Year Plan and major projects are likely to be launched earlier, according to Yuan Haixia, president at the China Chengxin International Research Institute. Yuan added that policy-based financial instruments introduced in the fourth quarter of 2025 took effect relatively slowly and their impact should be evident in the first quarter of this year. Xiao Guangrui, CEO of Ming Shu Data, said infrastructure investment may undergo a process of bottoming out and rebounding this year. According to Yicai, China International Capital Corporation expects infrastructure investment growth to reach 4.5% in 2026.
• Chinese authorities will prioritise closer fiscal and financial coordination to support the expansion of domestic demand in 2026, the latest report from the People’s Bank of China indicated. The central bank will integrate its relending tools with fiscal interest subsidy policies, Financial News said, noting that budgetary and monetary authorities will jointly share a portion of corporate financing risks to strengthen financial institutions’ willingness to extend credit. The People’s Bank of China has established risk-sharing tools for technological innovation and private enterprise bonds, while the central government has allocated fiscal funds to participate in risk sharing, experts noted.