China’s state-owned companies showed record growth since the beginning of the year

Almaty. September 29. Silkroadnews – China’s state-owned companies showed record growth since the beginning of the year, China Daily reported.
“China’s centrally-administered State-owned enterprises (SOEs) saw the strongest-ever growth both in revenue and profits for January-August. In the first eight months, China’s central SOEs reported a 15.7 percent increase in business revenue and a 17.3 percent growth in total profits, both historical highs,” the report said.
It is noted, however, that as a part of the structural reform, central state enterprises have also made significant progress in reducing excess capacity production.
“From January to August, China's central SOEs beat government-set targets by reducing 16.14 million tons of steel capacity and 55.1 million tons of coal capacity,” the agency quoted Xiao Yaqing, chairman of the State-owned Assets Supervision and Administration Commission.
It is also reported that as government reform has progressively been implemented along with the restructuring efforts, China’s central state enterprises have become more efficient and competitive over the past five years.
“By the end of 2016, total assets of China's central SOEs reached 50.5 trillion yuan (about $7.62 trillion), an 80 percent jump from the end of 2011,” Xiao added.
At the same time, it is noted that on September 27 China’s cabinet of ministers said that it is necessary to do a lot of work to promote the restructuring of central state enterprises, especially in manufacturing of equipment, coal, electricity, communications and chemical industries.
Since 2013, more than 30 central state enterprises have been restructured, including the merger of the two leading manufacturers of top bullet train makers and two large metallurgical companies.