For the people of Grand Cathay loyalty to their Dragon masters is paramount. They know, as long as they are true to their will, the Empire of Grand Cathay will never falter before her enemies.
BackSource: Warhammer: The Old World Online Rules Index
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A unit with this special rule may re-roll a failed Panic test when a friendly unit is destroyed whilst within 6" of it, or when it is fled through by a friendly unit.