China’s top securities regulator urged listed companies to reward investors with cash dividends, vowing to punish stingy “iron roosters.”
Liu Shiyu, Chairman of the China Securities Regulatory Commission (CSRC) also warned listed firms against raising money for blind investments, or designing complicated share structures that facilitate insider trading and other malpractices.
“Paying cash dividends is a basic way to reward investors … and the ultimate source of a stock’s intrinsic value,” Liu said in a recent speech, a transcript of which was posted on CSRC’s website on Saturday.
CSRC will take “tough measures” against those “iron roosters” who haven’t plucked a single feature for many years, even though they have the ability to pay dividends, Liu said.
Liu, installed as head of China’s securities watchdog following the 2015 stock market crash, has made investor protection his priority, having stepped up a crackdown on market manipulation and tightened disclosure rules.
Just a week ago we warned of China’s record glut of Iron Ore (enough to build 13,000 Eiffel Towers), and following warnings from Barclays and RBA of a likely pullback, futures in Dalian sank to lowest since November as steel sags.
Bloomberg reports that iron ore is getting beaten back down in a told-you-so rout after a procession of analysts, Australia’s central bank and miners themselves delivered warnings that gains were unsustainable, with the latest blow landed by the world’s top shipper saying prices are set to revisit the $50s.
Ore with 62 percent content in Qingdao fell 6.8 percent to $75.45 a dry ton, entering a bear market after declining more than 20 percent from a Feb. 21 peak, according to Metal Bulletin Ltd. The price has now erased all of this year’s gains, declining 3.1 percent. Earlier in Asia, futures in Dalian plunged 6.2 percent to the lowest close in five months as steel sank.
According to NBC News, the National Security Council has presented the suddenly ragingly bellicose President Trump with several options to respond to North Korea’s nuclear program: put American nukes in South Korea or kill dictator Kim Jong-un.
The scenarios were prepared in advance of Trump’s meeting with Chinese President Xi Jinping this week. The White House has expressed hopes the Chinese will do more to influence Pyongyang through diplomacy and enhanced sanctions, but if that fails, and North Korea continues its development of nuclear weapons, there are other options on the table that would significantly alter U.S. policy.
While Gen. John Hyten, the commander of U.S. Strategic Command, maintained on Wednesday that “any solution to the North Korea problem has to involve China” a senior intel official told NBC he doubted U.S. and China could find a diplomatic solution to the crisis. “We have 20 years of diplomacy and sanctions under our belt that has failed to stop the North Korean program,” said the official involved in the review. “I’m not advocating pre-emptive war, nor do I think that the deployment of nuclear weapons buys more for us than it costs,” but he stressed that the U.S. was dealing with a “war today” situation.
The “nuclear” option would mark the first overseas nuclear deployment since the end of the Cold War, a move that would promptly provoke global condemnation, not least of all by China. It was not immediately clear if South Korea’s regime – in turmoil recently following the recent impeachment and arrest of ex-president Park – had been consulted with the proposed strategy. The U.S. withdrew all nuclear weapons from South Korea 25 years ago.
Wall Street failed to hang on to its modest gains on Friday as escalating tensions between the US and Russia over President Donald Trump’s surprise airstrike on Syria weighed on investor sentiment.
The S&P 500 gave up gains of as much as 0.3 per cent to end the day 0.1 per cent lower at 2,355.54. For the week, the index is down 0.3 per cent.
It’s a similar story for the Dow Jones Industrial Average, which closed largely unchanged for the day, as well as for the week at 20.656.10, after having advanced as much as 0.3 per cent earlier on Friday.
The technology-heavy Nasdaq Composite also ended the day flat at 5,877.81 after reaching a session high of 5,892.06.
Stocks had a choppy Friday, with the major indices swinging between minor losses and gains as the markets weighed a weaker-than-expected March jobs report against Mr Trump’s latest foreign-policy shift and a terror attack in Stockholm.