Government Spent 2.2 Billion Yuan Keeping Troubled Listed Companies Afloat
Sixty-seven companies on the verge of being delisted from China's domestic stock markets, received a total of 2.2 billion yuan in payments from various level of government last year. The government subsidy for each company averaged 32 million yuan with ST Nanhua (*ST南化) receiving the largest payment of 335 million yuan. According to those close to the matter, various local governments subsidise these ST companies (ST being the prefix attached to the name of all shares that are at risk of being delisted) so that they appear to have made a profit and can continue to remain on the board.
Source
China News Agency
http://news.china.com.cn/2011-07/06/content_22927512.htm
Google translation
http://translate.google.com.hk/translate?hl=zh-CN&sl=zh-CN&tl=en&u=http%3A%2F%2Fnews.china.com.cn%2F2011-07%2F06%2Fcontent_22927512.htm
Sixty-seven companies on the verge of being delisted from China's domestic stock markets, received a total of 2.2 billion yuan in payments from various level of government last year. The government subsidy for each company averaged 32 million yuan with ST Nanhua (*ST南化) receiving the largest payment of 335 million yuan. According to those close to the matter, various local governments subsidise these ST companies (ST being the prefix attached to the name of all shares that are at risk of being delisted) so that they appear to have made a profit and can continue to remain on the board.
Source
China News Agency
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