Chinese SOEs see solid profit growth in 2017

Chinese state-owned enterprises (SOEs) saw 23.5 percent profit growth last year, a contrast to the 1.7-percent in 2016.

Data from the Ministry of Finance shows that combined SOE profits rose to a record-high 2.9 trillion yuan, or about 450 billion U.S. dollars for 2017.

SOE business revenue totaled over 52 trillion yuan.

2017 was the first year since 2010 that SOE business revenue and profit saw an increase in growth.

SOEs in coal, oil and petrochemicals enjoyed relatively large profit increases, while power generation firms suffered significant declines.

Staffs working at a petrol station owned by China National Petroleum Corporation in Jiangsu Province on Jan. 18, 2018. [Photo: IC]

In 2017, about 70 percent of the central SOEs were involved in mixed-ownership reforms, and authorities are reviewing plans for more to join the drive.

At the 19th National Congress of the Communist Party of China, the leadership pledged to further reforms to make SOEs "stronger, better and bigger," and turn them into "world-class, globally competitive firms."

With more on this, CRI’s Shane Bigham spoke with Cao Can, CRI's financial analyst.