SOEs to pay dividends to the government

China is expected to release rules requiring state-owned enterprises (SOEs) to submit their dividends to the government from the beginning of 2007. The rules, which originate from the Ministry of Finance and the State-owned Assets Supervision and Administration Commission (SASAC), are currently under review by other government departments.

The rules generally outline principles and directions for state-owned capital budgets, with detailed regulations on the proportion of profits to be paid out and how they should be used. The payouts will likely go towards public utility projects and funding industrial development.