I don’t know about that because other Chinese companies are paying dividends. In the US, a company is penalized for sitting on cash that is not distributed, assuming that cash is not needed for business purposes.
The Chinese government is doing everything it can to clear their companies’ reputations so I would think that they would encourage dividends, especially for a company like Longwei that is sitting on so much cash. Naked short-sellers have owned Chinese companies but the tide is starting to turn.
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