Estimate For Worker Layoff Fund Climbs to 46 Billion Yuan

Estimates were running about 30 billion yuan, now there's an estimate of 46 billion from SYWG.

Xinhua: Fund to help those made redundant by overcapacity cut
A large number of coal workers are expected to be affected by future capacity cut, although the State Council did not specify the scale.

To deal with looming redundancies, an "industrial restructuring fund" was initiated on Jan. 1, pooling money from factories across the nation based on their power consumption.

Brokerage Shenwan Hongyuan Securities estimates that the fund could draw in 46.8 billion yuan (7.2 billion U.S. dollars) a year.

"As required by the State Council, related departments are formulating rules on the use of the industrial restructuring fund," said Jiang Zhimin, vice head of China National Coal Association.

"As far as I'm concerned, the bulk of the fund will be allocated to redundant workers," said Jiang.

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