Some SOEs to start have em­ployee stock plan

China Daily (Canada) - - NEWS CAPSULE -

China will start to pilot an em­ployee stock- own­er­ship plan for some state-hold­ing enterprises this year to im­prove their com­pet­i­tive­ness.

Qual­i­fied em­ploy­ees in some SOE busi­nesses that are fully open to com­pe­ti­tion can buy a cer­tain amount of com­pany stocks, ac­cord­ing to guide­lines re­leased by the State-Owned As­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mis­sion of the State Coun­cil.

The ini­tia­tive aims to mo­ti­vate em­ploy­ees as eq­uity- hold­ers to work harder to im­prove com­pany com­pet­i­tive­ness.

An eco­nomic down­turn has put pres­sure on China’s SOEs, which are at the fore­front of an of­fi­cial drive to re­form the coun­try’s growth model and cut over­ca­pac­ity. SOE prof­its fell 8.5 per­cent year-on-year in the first six months of the year, nar­row­ing from 9.6 per­cent be­tween Jan­uary and May, ac­cord­ing to of­fi­cial data.

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