The Canadian Press - ONLINE EDITION

China reports profits at biggest state-owned companies fell last year as downturn deepened

  • Print

BEIJING, China - Total profits for China's biggest state-owned companies fell 6.9 per cent in the first 11 months of 2012 as an economic slowdown deepened, the government reported Thursday.

The squeeze even for the biggest, politically favoured Chinese companies highlighted the severity of the country's worst economic downturn since the 2008 global crisis.

Economic activity rebounded late in the year but analysts say a recovery is still shaky and will be gradual and weak. Growth fell to 7.4 per cent in the three months ending in September and is believed to have strengthened in the final quarter.

The Cabinet agency that oversees China's 116 biggest state-owned companies said they had total profit of 1.7 trillion yuan ($270 billion) in the year through November. Those companies include PetroChina Ltd., Bank of China Ltd., China Mobile Ltd. and other major corporate names.

That was an improvement over the 16.4 per cent decline in profit reported for the same companies in the first half of the year.

Despite weaker profits, total assets at the major state companies increased 15.1 per cent to 69 trillion yuan ($10.9 trillion), according to the State-Owned Assets Supervision and Administration Commission.

The wealth of major state companies has fueled public frustration. The companies receive low-cost bank loans, energy and other resources and many are monopolies or quasi-monopolies.

Communist leaders say China needs to build up such companies as economic champions but consumers complain about high prices and poor service.

China's expansion is still far more robust than Western economies or Japan but its companies have come to depend on unusually high growth to stay profitable.

State companies are far healthier financially than retailers, builders and other private sector companies. They say revenues fell by as much as half last year.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Jets defencemen ready to face adversity

View more like this

Photo Store Gallery

  • A Canada goose makes takes flight on Wilkes Ave Friday afternoon- See Bryksa’s 30 Day goose a day challenge- Day 09- May 11, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • A female Mallard duck leads a group of duckings on a morning swim through the reflections in the Assiniboine River at The Forks Monday.     (WAYNE GLOWACKI/WINNIPEG FREE PRESS) Winnipeg Free Press  June 18 2012

View More Gallery Photos

Poll

Will you be hitting up any Boxing Day sales?

View Results

Ads by Google