China regulator urges listed firms to pay dividends
The China Securities Regulatory Commission (CSRC), the country's top securities regulator, will penalise firms which refuse to pay cash dividends to investors, according to chairman Liu Shiyu. Regular dividend payouts signal the "healthy financial and operational conditions of a listed company”, Liu said. On the other hand, if a company refrains from paying dividends without proper justification, it could be a sign of poor internal mismanagement or accounting fraud. He was dismissive of the argument that growth companies are better to invest rather than pay dividends. Liu and the CSRC have vowed to be tough on firms who refuse to pay dividends when they have the financial capacity to do so. 
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