State-owned companies had a record year in 2017 | Business News | SupChina

State-owned companies had a record year in 2017

Part of the daily SupChina newsletter. Subscribe for free

The South China Morning Post reports that “total profit at enterprises owned by China’s central government rose 15.2 percent in 2017 to 1.4 trillion yuan (US$217.5 billion).”

  • The profits were the highest ever in absolute terms, while the growth rate in the sector was the highest in five years.
  • The results “vindicate plans the Chinese government announced in 2015 to overhaul its lumbering and debt-ridden state sector,” according to the SCMP.
  • In recent years, the number of companies directly administered by the central government fell to 98 from 117 in 2012. The remaining enterprises “have been under pressure to improve their management to attract private capital.”

Share
Jeremy Goldkorn

Jeremy Goldkorn is co-founder of the Sinica Podcast and currently edits SupChina and its daily newsletter.