Macro: Profits or losses?
(Beijing Review)
Updated: 2006-04-28 15:00
China's state-owned enterprises (SOEs) present a strange dilemma--they are
making profits but also draining state assets. This has prompted the National
Audit Office to set the examination of SOEs' financial accounts as a key task
for this year.
According to a Ministry of Finance report in February, performance of Chinese
SOEs maintained stable growth in 2005, generating 900 billion yuan in profits, a
year-on-year increase of 25 percent. A comparison of figures in recent years
shows rising profits in key SOEs, especially those in monopoly industries.
In 2005, the 169 SOEs directly supervised by the State-owned Assets
Supervision and Administration Commission of the State Council (SASAC) reported
profits of 640 billion yuan, accounting for more than 70 percent of the total
profits earned by all SOEs.
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