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Large State-owned Enterprises Continue to receive Government Subsidies

According to Shanghai Securities News, from 2008 to 2012, State-owned Enterprises (SOEs) that are directly under the central authorities paid the central government dividends totaling 358.9 billion yuan. Of the dividends paid, 330.9 billion yuan were remitted back to these SOEs. During the same period, those large SOEs that are publicly listed and under the control of State-owned Assets Supervision and Administration Commission of the State Council received government subsidies in the amount of 173.6 billion yuan. That amount was equal to more than double the total profits of those small to medium high tech companies listed in the second market.

For the past several years, the ratio of debt to total assets showed that creditors financed 80 percent of the assets of the top five power companies. In 2012, part of the dividends that the five companies paid was returned to the companies’ capital accounts.

Source: Shanghai Securities News reprinted by Xinhua, May 13, 2013