Date
26 September 2017

Employee stock ownership at center of SOE reform, paper says

State-owned assets administrations in several provinces will push ahead in the first half of the year with plans to let employees take stakes in state-owned enterprises (SOEs) to diversify ownership, the China Securities Journal reported Thursday, citing unidentified sources. The idea was proposed at the Third Plenary Session of the 18th CPC Central Committee in November and is expected to become a focus of SOE reform after the annual sessions next month of the National People’s Congress and Chinese People’s Political Consultative Conference, the report said. More programs are expected in the second half. Some industry insiders said it would be better if only SOE employees in key positions rather than all workers are allowed to share profits, creating “golden handcuff” financial incentives to retain important employees, the report said.

– Contact HKEJ [email protected]

TL/AC/SK

 

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