Using a panel of listed Chinese firms over the period 2001-2008, we investigate the interactions among corporate investment, financing, and payout decisions within a simultaneous equations system, where each decision is treated as endogenous and is subject to the constraint that sources much equal uses of cash, as implied by the flow-of-funds framework. We find that capital investment and dividend payout, being the competing uses of limited funds, are negatively interrelated, whilst both of them are positively connected to net amount of new debt issued, suggesting the existence of a joint determination of corporate decisions under financial constraints. In addition, we find that the simultaneity among the corporate decisions becomes more intensified for firms that are more financially constrained, which may reduce managerial flexibility of Chinese firms. Therefore, our result reveals new insight into the complex interdependence of corporate behaviour under financial constraints.