{
  "id": 19607539,
  "title": "As Beijing pushes for cash return, Chinese firms can unlock 15% valuation boost: report",
  "url": "https://urgent.news/2026/11/12/as-beijing-pushes-for-cash-return-chinese-firms-can-unlock-15-19607539",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-12T05:00:10.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/china-business/article/3374146/beijing-pushes-cash-return-chinese-firms-can-unlock-15-valuation-boost-report"
  },
  "original_language": "en",
  "account": "According to a report by Goldman Sachs, Chinese companies have the potential to unlock an additional 15% in equity valuation by increasing share buybacks and dividend payouts. The US investment bank attributes this boost to policymakers' efforts to enhance shareholder returns, which could lift the MSCI China Index valuation by approximately 15% from current levels. Historically, Chinese firms have favored issuing new shares over repurchases, causing a net share issuance that has diluted earnings per share by around 15% cumulatively. This trend has persisted alongside declining corporate profitability. Return on equity among Chinese listed companies has fallen for six consecutive years, and realized earnings per share growth has lagged market expectations for nine years in a row. The MSCI China Index's price-to-earnings ratio has declined to 9.7 times from its previous cycle peak of 17 times in early 2021. The report comes as Chinese regulators have encouraged companies to buy back shares and support the stock market amid sluggish corporate profitability and weak investor confidence. The bank expects Chinese companies to deliver annualized earnings-per-share growth of about 10% and a normalised return on equity of 12% over the next five years, driven by artificial intelligence, a trend of \"going global,\" and policies aimed at curbing excessive competition.",
  "summary": "Chinese companies could unlock a further 15 per cent in equity valuation upside by stepping up share buy-backs and dividend payouts, as Beijing seeks to encourage listed firms to return more cash to investors, according to Goldman Sachs. The US investment bank said in a report on Wednesday that an increase in corporate payout ratios and share repurchases, in line with policymakers’ efforts to…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Economic Times Tech",
        "title": "Alleged Chinese spy in Nvidia scandal is living in Beijing",
        "url": "https://urgent.news/2026/11/12/alleged-chinese-spy-in-nvidia-scandal-is-living-in-beijing",
        "published": "2026-11-12T01:54:21.000Z"
      },
      {
        "outlet": "The Business Times - Companies & Markets",
        "title": "Alleged Chinese spy at centre of Nvidia firestorm is in Beijing",
        "url": "https://urgent.news/2026/11/12/alleged-chinese-spy-at-centre-of-nvidia-firestorm-is-in-beijing",
        "published": "2026-11-12T02:35:27.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}