(Reuters) - China's state-owned firms enjoyed faster growth in their profits in the first six months of 2014, official data showed on Thursday, the latest indication that the economy is picking up as government stimulus measures kick in.
State-owned non-financial companies made combined profits of 1.22 trillion yuan ($197 billion) between January and June, up 8.9 percent from a year earlier, the Ministry of Finance said in a statement on its website.
That is a pick-up from an annual rise of 6.9 percent in the first five months and follows data on Wednesday that showed economic growth was slightly higher in the second quarter than in the first.
Firms owned by the central government reported an annual 9.9 percent rise in profits in the first six months, while companies owned by local governments saw their profits rise by 6.2 percent, the ministry said.
Companies in the transportation, automobile and building materials industries raked in more profits, while margins in the coal, chemical and textile sectors shrank. Firms in the non-ferrous metal sectors fared the worst, suffering losses in the first six months.
The ministry added that the total assets of state firms rose 12 percent to 97 trillion yuan at the end of June, while total liabilities climbed 12.4 percent to 63.3 trillion yuan.
This week China ordered six state-owned companies to start revamping their operations as part of reforms to let private capital play a bigger role in the state sector.
Despite repeated promises from China's government to allow more private investment in the world's second-biggest economy, state firms continue to dominate key industries.
reuters.com
State-owned non-financial companies made combined profits of 1.22 trillion yuan ($197 billion) between January and June, up 8.9 percent from a year earlier, the Ministry of Finance said in a statement on its website.
That is a pick-up from an annual rise of 6.9 percent in the first five months and follows data on Wednesday that showed economic growth was slightly higher in the second quarter than in the first.
Firms owned by the central government reported an annual 9.9 percent rise in profits in the first six months, while companies owned by local governments saw their profits rise by 6.2 percent, the ministry said.
Companies in the transportation, automobile and building materials industries raked in more profits, while margins in the coal, chemical and textile sectors shrank. Firms in the non-ferrous metal sectors fared the worst, suffering losses in the first six months.
The ministry added that the total assets of state firms rose 12 percent to 97 trillion yuan at the end of June, while total liabilities climbed 12.4 percent to 63.3 trillion yuan.
This week China ordered six state-owned companies to start revamping their operations as part of reforms to let private capital play a bigger role in the state sector.
Despite repeated promises from China's government to allow more private investment in the world's second-biggest economy, state firms continue to dominate key industries.
reuters.com
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