HK Stock Market Move | BRILLIANCE CHI (01114) fell more than 9%, the company declared a special dividend of 1 Hong Kong dollar; Citibank said the dividend payout far exceeded market expectations.

BRILLIANCE CHI (01114) fell more than 9%, closing at a 9.43% decrease to HK $3.84, with a trading volume of HK $742 million. In terms of news, BRILLIANCE CHI announced at a board meeting on March 3 that, after considering the financial and cash flow situation of the group and any potential strategic investment opportunities, the board decided to declare a special dividend of HK $1 per share of the company's ordinary shares. Citigroup released a research report stating that BRILLIANCE CHI's special dividend of HK $1 far exceeded market expectations of HK $0.25 to HK $0.5 per share. It is worth noting that BRILLIANCE CHI announced a revised dividend policy in December of last year. According to this policy, in deciding whether to recommend the payment of dividends and determining the amount of dividends, factors including the cash dividends paid by Huachen BMW in the relevant financial year will be considered, as well as the overall business performance and financial position of the group; expected working capital and capital expenditure needs; and future development plans. If it is decided to recommend the payment of dividends, the target is to distribute not less than 50% of the after-tax profits for the relevant financial year. Citigroup previously stated that BRILLIANCE CHI's revised dividend policy exceeded market expectations.