News Column

SASAC Financial Institutions to Submit 15% of Annual Profit

August 29, 2014

BEIJING, August 29, SinoCast -- China's finance minister Lou Jiwei disclosed a state-owned capital management budget management approach for financial institutions under the administration of SASAC is being researched, indicating all SASAC financial institutions included into the budget will submit part of after-tax profits on an annual basis.

Experts analyzed insurance companies, securities companies, China Development Bank and other non-listed SASAC financial institutions are expected to be included into the management approach to submit 10% to 15% of annual after-tax profits.

The profit submission proportion of SASAC enterprises is divided into five grades currently. China Tobacco submit 25% of annual after-tax profits currently, the largest proportion; petroleum, electric power and mobile telecom enterprises submit 20% of annual after-tax profits; non-military and research institute enterprises submit 15% of annual after-tax profits; military, culture and others submit 10% of annual after-tax profits; China National Cotton Reserves Corporation and China Grain Reserves Corporation are exempted from paying.

The Ministry of Finance in 2014 lifted the proportion by five percentage points. Affected by this, the ministry predicted annual after-tax profits paid by SASAC enterprises will reach CNY 141.49 billion, growing CNY 37.543 billion or 36.1% over a year earlier.

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Source: Sinocast Investing & Securities Beat (China)

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