Share swap program to get oversight

Updated 2017-11-28 09:02:56 China Daily

Three to five State firms, two central financial institutions in first batch

China's finance ministry will coordinate with other government departments to introduce a policy regime which supervises and evaluates the pilot program that will transfer shares of State-owned enterprises and financial institutions to the country's social security fund.

Starting from next year, different groups of SOEs and financial institutions will be approved stage by stage for share transfer, and the whole process is expected to be finished soon, said the Ministry of Finance.

Experts expect that the regime may include detailed standards for selecting specific enterprises as the targets, and the methods to assess the value of transferred assets.

According to an announcement, which was released on Nov 18 by the country's cabinet, the State Council, 10 percent of the State-owned equity will be transferred to the National Council for Social Security Fund and wholly State-owned enterprises.

By the end of this year, three to five SOEs and two central financial institutions in several provinces are planned to be selected as the first batch to start the program, the State Council's statement said.

A report from The Economic Observer, a local business newspaper, said on Monday that China Resources Group, Industrial and Commercial Bank of China and China Construction Bank may be included in the list of the first batch.

It also said that the Ministry of Finance will be in charge of the first round of enterprises' selection, after which it will coordinate with the State-owned Assets Supervision and Administration Commission and ask for opinion from the enterprises themselves.

The State-owned Assets Supervision and Administration Commission didn't respond on this information.

This pilot program is aiming to ease the pressure of pension payments through making up for possible shortfalls as the aging population continues to grow, and it will cut the burden of the working generation by expanding the pension fund scale without raising taxes or pension contribution rates, said the Ministry of Finance.

By the end of last year, the total income of China's social security fund has reached 5.01 trillion yuan (9.1 billion), up by 8.1 percent from a year earlier, according to the ministry.

The total expenditure of the social security fund was 4.36 trillion yuan, a year-on-year rise of 11.5 percent, marking a surplus of 650.8 billion yuan, as the official data showed.

Su Peike, a researcher with the Public Policy Research Institute at the University of International Business and Economics in Beijing, said that the ratio of the transferred State-owned equity could possibly be continually increased when the pilot program sees effective results, to better offset the large pension gap.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58December 19 2017 04:27:10

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16December 19 2017 04:27:10

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18December 19 2017 04:27:10

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords