Central SOEs post double-digit profit, revenue growth in January
SOURCE / ECONOMY
Central SOEs post double-digit profit, revenue growth in January
Published: Feb 15, 2022 07:52 PM
Staff members work at a manufacturing company in southwest China's Chongqing Municipality, Feb. 8, 2022.(Photo: Xinhua)

Staff members work at a manufacturing company in southwest China's Chongqing Municipality, Feb. 8, 2022.(Photo: Xinhua)



China's centrally administered state-owned enterprises (SOEs) recorded double-digit growth in profits and revenues in January, with net profits growing 10.2 percent year-on-year to hit 142.38 billion ($22.41 billion), official data showed. 

Analysts said that the higher-than-expected growth in January resulted from the central SOEs playing a major role in investing in infrastructure construction and projects under the China-proposed Belt and Road Initiative.

Operating income in January increased 12.4 percent on a yearly basis to reach 3 trillion yuan, while total profit reached 185.27 billion yuan, up 11.3 percent, according to official data from the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, China's cabinet.

The SASAC said that taxes and fees paid in the month reached 352.16 billon yuan, an increase of 18.2 percent year-on-year.  

The gain in profits proved the core role of central SOEs in stabilizing the market while correcting the public's expectation of the market, especially following the economic slowdown in the fourth quarter in 2021, Dong Dengxin, director of the Finance and Securities Institute at the Wuhan University of Science and Technology, told the Global Times on Tuesday. 

Official data showed that production of raw coal and steel, and sales of refined oil and steel, maintained steady growth, while passenger traffic continued to pick up slightly and total trade grew rapidly. 

For instance, an estimated 25.95 million trips were made nationwide on Tuesday, the 30th day of China's 40-day Spring Festival travel rush, CCTV reported on Tuesday.   

At present, China's economic development is facing the so-called triple pressures of shrinking demand, supply shocks and weakening expectations, so central SOEs have to support the economic development as backbones and play their roles as the "pillar," the Economic Daily reported.

Dong said that the country's economic development will basically return back to the normal track thanks to China's vigorous zero-COVID policy, while central SOEs take the leading role to motivate private enterprises. 

The revenue of centrally administered SOEs grew 19.5 percent to 36.3 trillion yuan in 2021, a record high, the SASAC said earlier in January.  

Global Times
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