GUIYANG, China, Feb. 26, 2018 /PRNewswire/ -- Bai Changyun, a
resident of Xibei community in Huaxi District in the capital city
of southwestern China's
Guizhou Province, received a big
"red envelope" of 16,500 yuan ahead
of the Chinese New Year. This is the dividend for his stakes in the
community.
"I have been a shareholder for ten years and the dividend rose
from 500 to 3,300 yuan per stake.
What an investment!" Bai said.
Bai's village's land was collected by the government ten years
ago to give room for projects such as expansion of Guizhou University and rebuilding shanty
areas. To address villagers' concerns, the grassroots government
decided to turn their collective assets into equities which are
shared by 1,355 villagers. The number of shares will never change
to ensure villagers' due interests.
An upgraded version of the village's practice was introduced
across Guiyang in 2017, which turn
collective assets into equities, cash into investment capital and
residents into shareholders. For residents related with rebuilding
shanty areas, they could choose to have a stake in new business
entities to enjoy possible dividends.
These residents can enjoy legitimate income from their shares.
The government encourages relocated residents to invest part or all
of their houses and land after assets appraisal. For those who
prefer monetary compensation, they can invest in business entities.
Relocated residents could become shareholders by offering their
assets, money or intellectual property rights. Meanwhile, they can
withdraw their shares according to specific rules.
The process is handled by a self-initiated local residents
economic cooperation organization, which will collect local
resources, assets and capital to promote stakeholdership among
social capital, business entities and residents by different
approaches.
The reform is expected to generate considerable benefit as
Guiyang plans to rebuild 22.31
million square meters of shanty areas from 2018 to 2020, involving
155,400 households.