Chinese SOEs ordered to hand over more profits next year

21:25, December 30, 2010      

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The centrally-administered state-owned enterprises (SOEs) were ordered to hand over 5 percent more of their after-tax profits to the central government beginning 2011, according to a statement by the Ministry of Finance (MOF) on Thursday.

According to the MOF statement on its website , 15 centrally-administered SOE giants in the resources and telecommunication sectors, including CNPC, Sinopec, CNOOC, State Grid Corporation, China Tobacco, Shenhua Group Co., Ltd. and China Mobile, should turn in to the MOF 15 percent of their after-tax profits next year, up from their current 10 percent requirement.

Also, beginning next year, 88 centrally-administered SOEs, including CHALCO, CNMC, COSCO, Air China, China Southern Airlines and China Merchants Group, will have to transfer 10 percent of their after-tax profits to the MOF, up from 5 percent this year.

Meanwhile, 33 other SOEs, including China National Nuclear Corp., China South Industries Group and China Film, will begin delivering 5 percent of their after-tax profits to the MOF in 2011. Currently, they don't have to turn in any of their profits.

Two other SOEs -- China Grain Reserve Corp. and China National Cotton Reserve Corp.-- can still keep their profits for their own development next year, according to the MOF. [ The MOF administers China's macroeconomic policies and the national annual budget, handles fiscal policy, economic regulations and government expenditure for local governments.

Chinese centrally-administered SOEs' profits are expected to hit 1 trillion yuan (about 151 billion U.S. dollars) in 2010, according to the State-owned Assets Supervision and Administration Commission (SASAC).

Another 652 SOEs, mainly affiliated with the Ministry of Education, will be included in the budget system of managing state capital, which requires their expenditure be examined by national and local legislatures.

Source: Xinhua
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