Hong Kong dividends rise 6.9% in Q3, outpacing region

However, median growth is just 2.8% given global market conditions.

Hong Kong dividends reached $9.4b in the third quarter (Q3), growing 6.9% on a core basis, according to the Capital Group Global Equity Study.

Third-quarter topline growth was 2.7%, whilst Q1 to Q3 core grew by 7.2%. The figures outperformed regional average distributions, driven by the financial sector.

Median growth is only 2.8%, attributed by the study to an unstable global market.

The financial sector pushed core growth, led by the Hong Kong Exchange & Clearing (HKEC) and Bank of China. Gaming and tourism also supported earnings and cash generation, driven by Galaxy Entertainment.

The property sector was the weakest contributor, mainly due to high financing costs, weak transaction volumes and subdued valuations.

Capital Group said whilst growth is good, it was narrow and relatively concentrated in a handful of large companies.