Firms 'must pay cash dividends'

China's securities regulator yesterday said listed companies must pay dividends in cash rather than stock over three years before submitting their refinancing applications.

Another major move to boost the falling stock market, it could help encourage long-term investment and reduce market volatility, the China Securities Regulatory Commission (CSRC) said.

In the new regulation stipulating cash dividend payment, the CSRC said: "The listed firms, if applying for refinancing, must pay dividends in cash totaling no less than 30 percent of its distributed profits over the previous three years."