Using case study of CANGZHOU MINGZHU Corporation, the large amount of cash dividend policy of some listed corporations were researched. It is found that both from angle of the profit flow and the cash flow, cash dividend payment of CANGZHOU MINGZHU Corporation is irrational. But stock markets response to the payment was not intense, neither catering nor negative reaction. The reasons why the corporation distribute large amount of cash dividends stems from shareholders with limitation in selling the stock who forfeit some projects whose NPV is positive for tradable share and distribute cash dividends to realize their purpose of speeding up recycling the funds that they have invested in the corporation.