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December 15, 2009

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Home » Business » Economy

Income at SOEs up as rebound firms

CHINA'S state-owned enterprises posted a rise in their revenue and profit in the first 11 months for the first time this year, signaling that the country's economic recovery is strengthening, but the State-owned Assets Supervision and Administration Commission preferred to err on the side of caution warning that the recovery is still not solid.

The centrally-administered SOEs earned 710.96 billion yuan (US$104 billion) in the period, a jump of 3.4 percent from a year earlier, compared with a 6-percent fall in the first 10 months, the commission said yesterday.

Their revenue gained 3.4 percent to 11.1 trillion yuan, following a 0.4-percent drop through October, the commission said.

The commission said the SOEs could expect their net profit for the whole of 2009 to reach 750 billion yuan while revenue may total 12 trillion yuan, exceeding last year's.

"SOEs have benefitted from the central government's stimulus policies to fight the economic recession and secured stable production and operations," Li Rongrong, director of the commission, told SOE executives at a conference yesterday.

"However, the recovery is not solid as resource allocation is still inefficient, and cost control still lags behind international standards," Li said.

The commission plans to cut the number of SOEs to between 80 and 100 next year from 131 through mergers and acquisitions.


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