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In a significant development for China’s stock market, more than 200 A-share companies announced cash dividend plans for the third quarter on Monday, as policies to support healthy capital market development come into effect.

Regulatory encouragement and investor interest in higher dividends are prompting listed companies to increase their dividend payouts to boost investor confidence, experts say.

As of Monday, 219 listed companies had disclosed cash dividend proposals, with a combined total of 31.18 billion yuan ($4.3 billion) earmarked for distribution, Securities Daily reported, citing the dividend service provider. Wind financial information.

Compared to previous years, this year’s increase in the number and frequency of dividends represents a notable change within the A-share market. In the third quarter, the number of companies declaring dividends reached a multi-year high , according to the report.

The increase in dividend announcements reflects a broader trend in the A-share market, where companies increasingly recognize the importance of returning value to shareholders, the China Association of State-Owned Enterprises said Monday.

The association said that, under the guidance and encouragement of government policies, listed companies have improved their cash dividends this year.

As of October 31, the number of listed companies announcing cash dividend plans in their third-quarter reports was up 273% year-on-year. The total amount of expected dividends jumped 72%, with five companies planning to distribute more than 1 billion yuan, according to the association.

Listed companies’ growing enthusiasm for dividends is mainly due to the active encouragement of regulators. Companies with higher dividend levels tend to attract more investors, and these market reactions encourage these companies to increase their dividend payouts, Xi Junyang, a professor at the University of Finance and Economics, said Tuesday from Shanghai, to the Global Times.

“For investors, stable dividends represent tangible cash returns that directly increase their wealth and boost their confidence,” Xi said.

Dong Shaopeng, a senior researcher at the Chongyang Institute of Financial Studies at Renmin University of China, told the Global Times on Tuesday that, generally speaking, mature companies that consistently offer dividends are an important factor for make the market more attractive to investors.

In April, China’s State Council issued a guideline on strengthening regulation, preventing risks and promoting high-quality development of the capital market.

He called for stricter regulation of cash dividend payments by listed companies. Incentives will be increased for companies with strong dividend performance, and various strategies will be used to increase dividend yields. Efforts will focus on improving the stability, sustainability and predictability of dividends, as well as promoting multiple dividend distributions over the course of a year, according to the guideline.