State firms to pay dividends in 2008

Beijing announced that state-owned enterprises (SOEs) will begin paying 5% and 10% dividends, depending on the industry, as it readies to launch its profit-collection program, the Wall Street Journal reported. China's 155 SOEs were previously not required to pay dividends, and in most cases used profits for faster expansion. Energy, telecommunications and tobacco companies will pay 10%, while steel, transport and elctronics firms will pay 5%. No specific date was given for when in 2008 companies would begin paying dividends.