Chinese state firms to hand over more profits

Chinese state-owned enterprises (SOEs) will have to pay 5 percent more of their profits to the government, the Ministry of Finance said Tuesday. The money will be used to improve social services, the ministry said. SOEs administered by the central government will pass on up to 25 percent of their profits depending on their line of business. The change is based on profits made from the beginning of this year, the ministry said. Tobacco companies will turn in 25 percent of their profits, with petrochemical, electricity, telcom and coal companies paying 20 percent, steel, transportation, electronics, trade and construction companies transferring 15 percent, while military-industrial companies hand in 10 percent. Some companies including China Grain Reserves Corp and China National Cotton Reserves Corp can still keep their profits for their own development. The central SOEs are expected to deliver 141.5 billion yuan (22.7 billion U.S. dollars) to the government this year, up 36.1 percent from last year, according to the ministry.