The China Securities Regulatory Commission is urging public companies to formulate clear policies for paying cash dividends, and it called on them to periodically release information to shareholders.

"The listed companies are required to collect opinions from independent directors as well as small and medium shareholders before writing the dividends allocation policies into the operational bylaws," an official from the country��s top financial regulatory institution said on May 9.

Companies that have refinancing plans should publish the amount of cash dividends paid out in the past three years. Those preparing for an initial public offering must release detailed plans for paying dividends over the next three years, according to the commission.

"The dividend scheme is determined by public companies themselves based on their development strategies. So the regulatory commission will not lay out mandatory provisions about the exact amount of dividends or require them to be a certain proportion of profits," the official added.

In 2010, there were 1,321 public companies that paid dividends to shareholders, up from 1,006 in 2009 and 856 in 2008, according to the commission.

In the same year, 854 companies, accounting for 39 percent of listed firms, did not send out cash dividends.

The commission plans to step up supervision in each province with the securities exchanges in Shanghai and Shenzhen to ensure a mature dividends information system for investors.