The profits of state companies of China continue to fall

Almaty. July 21. Silkroadnews - Profits of China's state-owned enterprises continued to decline in the first half of 2015, reported Xinhua news agency.
In January - June, the aggregate profits of state enterprises decreased by 0.1% compared to the same period last year to 1.2 trillion yuan, or $201.5 billion, said in a statement of the Ministry of Finance of the PRC. The rate of reduction in profit declined compared with the 3.3 percent drop, recorded in January-May.
According to the ministry, despite the reduction in the profits of state enterprises, their productivity increased steadily since the period of January-February, when it fell by 21.5% against last year.
During this period of time the proceeds of the activities of state enterprises dropped by 5.8%, while reducing operating costs by 5.3%.
Profits of public enterprises in the transport, chemical products, electronics and electric generators has increased significantly, thus, there was a decline of profit of the coal, steel, petroleum and petrochemical industries. Companies producing non-ferrous metals, reported losses in the amount of 4.5 billion yuan in the first half.
In the second quarter of 2015. China's economic growth was higher than expected and amounted to 7%. Remains at the level of the first quarter, it conform to the figures, the government intended this year.
In order to accelerate economic growth slowing, the Chinese Government three times this year has cut interest rates at the same time lowering the reserve requirements of banks. In addition, measures were taken to increase funding for infrastructure to promote investment.