The China Securities Regulatory Commission has announced that publicly-traded companies must pay dividends in cash, rather than stocks, over three years before submitting a refinancing application. The move is the latest attempt to stimulate long-term investment in a market increasingly on edge following the global financial collapse.
The regulation came into effect on Thursday, and follows a draft
version that was released in August. Listed firms in China must also
reveal their cash dividend policies and previous cash dividend data to
investors in their annual reports.
“Cash dividends could offer stable investment returns and prompt large
institutional investors to reduce speculation on the secondary market,”
the CSRC said.
News & Interviews 
(0 vote)
