Not every company based in Hong Kong is required to pay dividends. This is because companies are only expected to pay dividends when certain circumstances surrounding the company are evident. However, legal action can and will be taken towards any firm which does not pay dividends to its shareholders even when it ought to do so.

Dividends only ought to be paid if the company has made positive earnings. Such will occur if the company’s net profits over the current fiscal year amount to a total higher than the company’s cumulative losses over preceding fiscal years. If such a circumstance takes place, the shareholders of the company can expect to receive dividend payments accordingly.