China's state-owned enterprises are expected to record profits of over one
trillion yuan (125 billion US dollars) after tax in 2006, reports the
State-owned Assets Supervision and Administration Commission of the State
Council (SASAC).
Central SOEs will contribute 700 billion yuan of the
total and the remaining 300 billion yuan will come from local state firms, said
Li Baomin, official with SASAC.
SOE profits have been on the increase in
recent years, with profits in 2005 surging 25 percent from the previous year to
904.7 billion yuan.
Debate has heated up over who should manage the
hefty SOE profits, which have been in the hands of the SOEs since the taxation
reform in 1994.
The government is working on a new accounting system,
which will allow the state to share the profits of the SOEs.
(For more biz stories, please visit Industry Updates)