Report hints dividend cuts could go beyond Big Four banks
Report suggests other lenders might be allowed to trim payout ratios to meet capital rules
Investors should brace for lower dividend income from many mainland banks, as they conserve cash to shore up capital.
In February, state-owned investment arm, Central Huijin Investment, said the mainland's Big Four banks, in which it holds controlling stakes, would cut the banks' respective dividend payout ratios by five percentage points to 35 per cent of 2011 profits.
Bank of China, the nation's fourth-biggest bank, said in March that it would probably go farther and cut its dividend payout for this year to as low as 30 per cent, saying it would try to strike a balance between meeting regulatory requirements on capital and rewarding its shareholders.
But yesterday an article in state-owned , citing unnamed official sources, indicated that other listed commercial banks on the mainland might be allowed to cut their dividend payout ratios.
Some analysts said the move could ease the pressure on commercial banks to raise fresh capital to meet the higher official requirements.
The mainland equivalent of Basel III capital requirements will take effect in January.
