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Share SOE profits

China Daily | Updated: 2013-03-26 08:07

As the economic prowess of China's key State-owned enterprises continues to grow, there are increasing calls for them to hand over more of their profits to the State so that people can share the fruits of their success.

Such calls are well-founded as China's SOEs pay only 5 to 20 percent of their profits to the State, depending on how profitable the industry is. Lou Jiwei, minister of finance, admitted that the ratio is "low" during the 2013 China Development Forum on Sunday.

Although State-owned enterprises have been shouldering, at least partially, the costs of corporate reform as China transitions from a planned economy to a market-oriented one, they have only been required to pay dividends to the State since 2007, and the initial ratio was as low as 5 percent.

Share SOE profits

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