SOEs post slow rise in profit in May
By Pan Xiaoyi |
June 24, 2010, Thursday
|
Print Edition
Print Edition
PROFIT growth for China's state-owned enterprises slowed in May due to a higher base last year and the government's tighter measures to curb inflationary risks.
The combined profit of the SOEs climbed 65.8 percent on an annual basis in the first five months of this year to 749.29 billion yuan (US$110.2 billion), the Ministry of Finance said in a statement. The profit growth rate in May was 1.2 percentage points lower than in April, the statement said without elaborating.
Revenue at the SOEs jumped 44 percent from a year earlier to 11.5 trillion yuan in the period.
Analysts attributed the slower growth to a higher comparative base due to a stronger economic performance last year and a tighter monetary stance this year.
In the first quarter of 2009, China's gross domestic product rose an annual 6 percent and accelerated to an 8.7 percent increase in the fourth quarter.
The central government also decided to withdraw some of the stimulus package measures to curb inflation risks.
"As the economic recovery stabilizes, the government has unveiled several strict measures to crack down on outdated production, overcapacity and high-polluting industries where SOEs played a dominant role and suffered the most," Founder Securities Co said.
The brokerage estimated profits will shrink.
The oil and coal industries saw a monthly rise in profits while the petrochemical and auto industries posted a monthly fall. Profits at the steel and nonferrous metals sectors were stable.
The combined profit of the SOEs climbed 65.8 percent on an annual basis in the first five months of this year to 749.29 billion yuan (US$110.2 billion), the Ministry of Finance said in a statement. The profit growth rate in May was 1.2 percentage points lower than in April, the statement said without elaborating.
Revenue at the SOEs jumped 44 percent from a year earlier to 11.5 trillion yuan in the period.
Analysts attributed the slower growth to a higher comparative base due to a stronger economic performance last year and a tighter monetary stance this year.
In the first quarter of 2009, China's gross domestic product rose an annual 6 percent and accelerated to an 8.7 percent increase in the fourth quarter.
The central government also decided to withdraw some of the stimulus package measures to curb inflation risks.
"As the economic recovery stabilizes, the government has unveiled several strict measures to crack down on outdated production, overcapacity and high-polluting industries where SOEs played a dominant role and suffered the most," Founder Securities Co said.
The brokerage estimated profits will shrink.
The oil and coal industries saw a monthly rise in profits while the petrochemical and auto industries posted a monthly fall. Profits at the steel and nonferrous metals sectors were stable.
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