SOE Revenue Growth: Central SOEs' revenue grow by 10.1% y-o-y

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01:38

Chinese centrally-administered state firms posted a blistering performance in June, pushing first half revenue and profit growth to best ever levels. Take a look.

Cost-control and technology driven growth -- that's behind the record first half performance for China's central SOEs. Total revenues hit 2 trillion USD, up 10.1% year on year. Combined profit rose 23% to 132.1 billion USD.

Both numbers were up markedly from first quarter levels.

PENG HUAGANG, DEPUTY SECRETARY GENERAL STATE-OWNED ASSETS SUPERVISION AND ADMINISTRATION COMMISSION "The profitability of enterprises in the real economy, especially industry, has improved. Profit growth in some key sectors, such as petrochemicals, metallurgy, power generation, exceeds 30%. The proportion of revenue from emerging sectors is also rising, becoming a key growth point of central SOEs."

Going into the second half, central SOEs must brace for the impact of tarriffs as part of the China-US trade friction.

PENG HUAGANG, DEPUTY SECRETARY GENERAL STATE-OWNED ASSETS SUPERVISION AND ADMINISTRATION COMMISSION "All enterprises want a clear and defined rule of trade, without any unilateral manipulation, and a stable and fair environment of trade, rather than uncertainty. On the one hand, we will prepare for any risks. On the other hand, we are determined to expand opening up and cooperation."

Many SOEs in sectors such as automobile, agriculture, and energy, WILL be impacted by the rising tarriffs. But analysts say the feed-through effect will be limited and the government is consulting with businesses to offer safeguard measures.