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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: RJA_ who wrote (26299)	12/12/2007 1:25:11 AM
From: TobagoJack	Read Replies (4) \| Respond to of 220163

scmp.com State firms ordered to pay dividends Reuters in Beijing 5:09pm, Dec 11, 2007 The central government on Tuesday ordered state enterprises to start paying a dividend next year of 5 per cent or 10 per cent, depending on which sector they were in, in a long-awaited move to better distribute the nation’s wealth. The Finance Ministry said companies in resource industries - including oil, petrochemicals, power, telecommunications, coal and tobacco - would have to pay a 10 per cent dividend. Companies in competitive industries such as steel, export-import, transport, electronics and construction, would pay 5 per cent, according to a statement on the ministry’s website, www.mof.gov.cn. The military industry and firms directly controlled by research institutes would be exempt but their status would be reviewed in three years’ time. The statement fleshed out an order in September by the State Council, the cabinet, requiring all companies in which the state has a stake to pay a dividend on their earnings, including operating profits, investment gains and proceeds from share sales. The Finance Ministry will collect the dividends together with the State-owned Assets Supervision and Administration Commission, which oversees leading state firms. SASAC chairman Li Rongrong has previously said the dividends would be used for public works projects and industrial development. The World Bank has urged the mainland to require state firms to pay dividends to reduce their surplus savings, which is contributing to China’s high investment rate - one of the main imbalances in the economy.