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Business / Economy

China SOE profits tumble in Jan-Sept

(Xinhua) Updated: 2015-10-22 09:20

BEIJING - The profits of China's State-owned enterprises (SOEs) continued to fall in the first three quarters of the year, weighed by lingering downward pressure on the broader economy.

Profits declined 8.2 percent year on year in the January-September period to 1.74 trillion yuan ($274.13 billion), and the drop was only 6.6 percent in the first eight months, according to data from the Ministry of Finance on Wednesday.

SOEs in the areas of petrochemical, oil refining and construction materials saw substantial profit declines, while the steel, coal and non-ferrous metal sectors continued to suffer from major losses. However, profits of companies in transportation, electronics and chemical engineering improved in the period.

Profits at SOEs have been down throughout the year due to a febrile economic climate. The Chinese economy posted 6.9-percent growth year on year in the third quarter, lower than the 7 percent posted in the first half.

To stimulate the torpid SOEs, the government unveiled guidelines last month to address issues in mixed ownership and to introduce a modern enterprise system, which would make SEOs more market-oriented and improve efficiency.

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