Abstract: It is demanded in the nine stipulations of the state issued by the Stock Supervisory Committee that efforts be made to research the scrip dividend scheme so that the forms of stock interest allocation can be diversified. Based on a brief analysis of the connotation of the scrip dividend scheme, the significance for the popularization of the scrip dividend scheme is put under examination and a review of the procedures concerning the scrip dividend scheme in the Hong Kong Exchange Union is done and the preconditions for the implementation of the scrip dividend scheme in the Chinese capital market are elaborated on and a scheme for the establishment of such a scrip dividend is also put forth for the listed companies.