China's watchdogs are considering new rules to encourage listed companies to share active profits with their shareholders, China Securities Journal reported Wednesday.

The rules may require all listed companies with consecutive profits to pay yearly dividends based on a certain proportion. The regulator officials may also consider reducing the rate of the dividends tax and encourage long-term investments, the newspaper reported.

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Watchdogs also study new methods to standardize listed companies' dividend payments, such as linking senior executives' packages with the distribution of dividends, according to the report.

One insider said the distribution of cash dividends should be used as an important way to repay investors. However, most investors on the A-share market earned money from the margin between stocks' selling and buying.

In the past three years, the total sum of cash dividends paid by China's listed companies accounted for 31 percent of their net profits. On mature international markets, paid cash dividends totaled between 40 and 50 percent. But the situation still could match the development of China's securities market, the insider said.