Economic Policy News
- State-owned firms to pay dividends to Govt.
Date: 4-Jun-2007 Sources: (Shenzhen Daily)
THE State Council said Wednesday it will begin a trial program this year that will require State firms to pay dividends to the government, a move intended to slow rapid investment growth and boost government revenue.
The State Council said the measures would be rolled out in phases, beginning with centrally owned State firms. Local government-owned firms' dividend policies will be determined by local governments.
The government will use the dividend payments to boost China's overall industrial development, advance high-technology development, and supplement the social security system, the State Council said in a statement posted on its Web site.
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