Some SOEs to start have employee stock plan
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.