Profit surge of Chinese central SOEs fuels call for fair distribution

BEIJING, May 6 (Xinhua) -- An 85.7 percent
month-on-month surge in the profits of central state-owned enterprises (SOEs) in
March has triggered call for a fair distribution of their profits.

The 138 SOEs made a profit of 62.29 billion yuan
(about 9.1 billion U.S. dollars) in March.

"In France, SOEs turn in 50 percent of their profits
as dividends to the government. SOEs in Sweden, Denmark and the Republic of
Korea turn in about one third to two thirds of their profits," Zhu Lijia, a
professor with the National School of Administration, told Xinhua Wednesday. The
school specializes in training cadres

"SOEs only turn in at most ten percent of their
profits as dividends to the government. The percentage is too low," Tang Min,
deputy secretary of China Development Research Foundation, which is affiliated
with the Development Research Center of the State Council (cabinet).

"The international average is about 30 percent," he
said.

Centrally controlled SOEs were required as of 2007 to
pay 5 percent to 10 percent of earnings as dividends, depending on their
industries, under a regulation issued by the State Council.

Analysts also said that central SOEs have benefited
most from the 4 trillion yuan stimulus plan announced last year, compared with
the private sector.