Chinese companies listed in Hong Kong are bringing forward dividend payments to the second quarter, a move that may smooth out yuan volatility over the year.

The payments, which require the firms to convert yuan into Hong Kong dollars, are set to rise to $36.1 billion for the April-to-June period, almost double the average for the prior nine years, data compiled by Bloomberg show. As a result, projected payouts for the third quarter are poised to fall by more than half.

“It’s highly likely that the final dividend payouts are being brought forward to the second quarter intentionally, spacing out the distributions to avoid overloading the yuan in the third quarter,” said Wu Xuan, a fund manager at Borui Funds Management Co. in Beijing. “Staggering the conversion schedule could be another way to lessen downward pressure on the currency.”

The fate of the yuan is particularly in focus this year as the global trade war instigated by US President Donald Trump has been most heavily targeted at China. Trump last month announced a 145% tariff on many products from the Asian nation. The yuan has weakened 2% versus the dollar in the past six months, underperforming all except two of its 16 Asian counterparts.

The bulk of Chinese companies listed in Hong Kong earn their revenues in yuan but pay shareholders dividends in the city’s currency, a conversion that typically puts pressure on the onshore yuan.

The shift in the dividend timetable may also be at least partly driven by the aim of Chinese regulators to bolster shareholder returns. A “Nine-Point Guideline” published by the State Council last year included an initiative to see more corporate profits passed on to investors, and specified measures to boost mid-year payouts.

Banks are good examples of this year’s transition. China Construction Bank Corp. is poised to pay a final dividend totaling $6.8 billion in May, whereas the date of the that payment was always previously in the third quarter.

Bank of China Ltd., Bank of Communications Co. and Postal Savings Bank of China Co. are among those splitting their final dividend that typically took place in the third quarter into two installments both occurring the first half of the year.

The projected decline of dividends in the third quarter may end up being smaller than currently envisaged as some firms have yet to disclose a payment date. Heavyweights China Mobile Ltd. and Ping An Insurance Co., for instance, usually distribute interim dividends in the second half of the year, but these are not yet announced.

Among the biggest contributors to the record second-quarter distributions have been Tencent Holdings Ltd., which is set to pay a final dividend of $5.33 billion, a 33% increase from a year earlier. E-commerce firm JD.com Inc. will pay out $1.46 billion and aluminum-maker China Hongqiao Group Ltd. will distribute $1.24 billion, both record amounts.

Trade-related news has become the single most important factor for investors across Asia, overshadowing local developments. While signs emerged last week there may soon be progress in resolving the Sino-American stalemate, negotiations may still take months.

“There was chatter that Chinese companies listed in Hong Kong were aiming to ramp up dividend payments for the second quarter because of anticipation that we may see increased volatility in the FX space going forward,” said Kok Hoong Wong, head of institutional equities sales trading at Maybank Securities Pte. in Singapore

With assistance from Abhishek Vishnoi.

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