Marbridge Consulting, 12/19/07
On December 18 SASAC published a list detailing the percentage of profits which SOEs directly under its oversight must pay to the Ministry of Finance. Five of China's six main telecom operators, China Mobile (NYSE: CHL; 0941.HK), China Telecom (NYSE: CHA; 0728.HK), China Netcom (NYSE: CN; 0906.HK), China Tietong and China Satcom were listed among the 18 SOEs paying the highest percentage - 10%. China Unicom (NYSE: CHU; 0762.HK; 600050.SH), however, was not listed in SASAC's profit-sharing plan. Several industry insiders have suggested that this omission is an indication that SASAC plans a restructuring of Unicom soon.
SASAC designated 2007 a trial year, during which all SOEs are to pay only half the required percentage of their 2006 after-tax profits.