Related News
Higher dividends for social net
By Wang Yanlin |
December 31, 2010, Friday
|
Print Edition
Print Edition
CENTRAL government-administered enterprises have to pay more in dividends from 2011 as the government boosts funding of social services, the Ministry of Finance said yesterday.
State-owned tobacco, petroleum, petrochemical, power, telecommunications and coal companies will have to pay 15 percent of their after-tax profit to the state, up from 10 percent now, the ministry said in a notice posted on its website.
Such companies, including China Petrochemical Corp, State Grid Corp of China, China Huaneng Group Corp and China Telecommunications Corp, are required to pay the largest dividends to the state.
Companies in manufacturing, aviation, agriculture, medicine and construction are required to pay 10 percent of their net profits, while academic institutions, entertainment firms and producers of military equipment have to set aside 5 percent.
For example, under the new rule Baosteel Group, China Eastern Air Holding Co and Cofco Corp will have to pay 10 percent of their net profits as dividends next year.
These centrally-administered companies have to pay higher dividend requirements because China is spending more on social services, such as health care, education and public housing, as it beefs up efforts to improve the social safety net in order to boost domestic consumption as a major driver of the economy.
Profits for these firms were 802 billion yuan (US$121 billion) in the first 11 months, a 50.1-percent jump from a year ago, said the State-owned Assets Supervision and Administration Commission.
State-owned tobacco, petroleum, petrochemical, power, telecommunications and coal companies will have to pay 15 percent of their after-tax profit to the state, up from 10 percent now, the ministry said in a notice posted on its website.
Such companies, including China Petrochemical Corp, State Grid Corp of China, China Huaneng Group Corp and China Telecommunications Corp, are required to pay the largest dividends to the state.
Companies in manufacturing, aviation, agriculture, medicine and construction are required to pay 10 percent of their net profits, while academic institutions, entertainment firms and producers of military equipment have to set aside 5 percent.
For example, under the new rule Baosteel Group, China Eastern Air Holding Co and Cofco Corp will have to pay 10 percent of their net profits as dividends next year.
These centrally-administered companies have to pay higher dividend requirements because China is spending more on social services, such as health care, education and public housing, as it beefs up efforts to improve the social safety net in order to boost domestic consumption as a major driver of the economy.
Profits for these firms were 802 billion yuan (US$121 billion) in the first 11 months, a 50.1-percent jump from a year ago, said the State-owned Assets Supervision and Administration Commission.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
