Net profits up 18.6% for Chinese SOEs in first half of 2017

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Fresh data shows that net profits for China’s state-owned enterprises rose 18.6 percent year-on-year to 535.3 billion yuan (nearly 78 billion US dollars) in the first half of 2017.

China's state assets regulator said profits at the SOEs stood at 159.7 billion yuan (23 billion US dollars) in June, a record monthly high. The oil, electronics, coal, transportation and power generation sectors posted strong profit gains.

Meanwhile, steel capacity at SOEs was cut by 5.95 million tons in the first six months of 2017. That was while coal capacity was trimmed by 6.59 million tons. Analysts say that the rise in profits in the first half reflects recovery in factory output and industrial upgrading.

The government says it will keep driving restructuring in the coal, heavy machinery and steel sectors. It will also tighten supervision over reforms in mixed-ownership, property protection and the salt industry.

CGTN Photo

Central authorities are also expected to include more companies in mixed-ownership reforms, in a bid to attract more private capital.