Ministry of Finance 'Wants More SOEs to Hand over Profits'

(Beijing) ­– More companies that are owned by central government agencies will be required to make contributions to the government's coffers this year, an official at the Ministry of Finance told Caixin on January 17.

The official said the ministry is making the move based on an order from the State Council, the country's cabinet.

State-owned enterprises (SOEs) that are linked to what the government calls "the budget system" are required to hand over a certain proportion of their net profits depending on their line of business. The levels range from 5 to 20 percent for SOEs around the country. China National Tobacco Corp. is the only enterprise that is required to hand over 20 percent of its profits.