SOEs record 25% jump in profits

CHINESE state-owned enterprises reported solid profit growth in the first two months of 2018 as the economy started the year with better-than-expected performance, official data showed yesterday.

Combined SOE profits rose 25.3 percent year on year to 367.3 billion yuan (US$58.5 billion) for the January-February period, the Ministry of Finance said.

The growth was higher than the 23.5-percent jump seen in 2017.

SOE business revenue rose 11.2 percent from a year earlier to 8.3 trillion yuan during the period. Operating costs gained 10.6 percent to 8.1 trillion yuan.

By the end of February, total SOE assets stood at 163.6 trillion yuan, up 9.7 percent, with liabilities at 107 trillion yuan, up 9.3 percent.

SOEs in petrochemical, steel and power generation enjoyed relatively large profit increases, but non-ferrous metal firms suffered significant declines.

China has thousands of SOEs, but many have stagnated due to lack of competition. The government is improving their performance through a series of reforms, moving toward mixed ownership and marketoriented management.

China has undertaken several rounds of mixed-ownership reform, including one covering telecom giant China Unicom, to bring in private investment mainly by issuing shares.

Earlier this month, policymakers vowed to make Chinese SOEs front runners in pursuing high-quality development through reform and innovation.

China welcomes all types of enterprises, including foreign ones, to participate in mixedownership reform of SOEs, the state assets regulator has said.