Chinese State-Owned Enterprises Turn Operating Profit Positive... Local State-Owned Debt Ratio Rises

China Ministry of Finance Reports 90% Recovery to Pre-COVID-19 Levels as of October
Central State-Owned Enterprises Debt Ratio at 67.2%, Local at 62.7%

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese media reported that the operating profits of state-owned and state-holding enterprises (state-owned enterprises) nationwide in China have turned positive, recovering to pre-COVID-19 levels.

According to data released by the Chinese Ministry of Finance on the 27th, the operating profit of Chinese state-owned enterprises last month increased by 7% compared to the same month last year.

[Image source=Yonhap News]

Also, the after-tax net profit of state-owned enterprises in October increased by 62.7% compared to the same period.

The cumulative total profit of Chinese state-owned enterprises up to October was 2.63 trillion yuan, which is a 10% decrease compared to the same period last year.

The Ministry of Finance explained that the total profit of central state-owned enterprises was 1.7607 trillion yuan, while local state-owned enterprises recorded 869.2 billion yuan. The Ministry of Finance stated that due to the impact of COVID-19, the profits of central and local state-owned enterprises decreased by 9.4% and 11.3%, respectively.

However, the Ministry of Finance added that profits turned positive in October, recovering to 90% of the pre-COVID-19 level.

Meanwhile, as of the end of October, the debt ratio of Chinese state-owned enterprises was 64.5%, an increase of 0.3 percentage points compared to the same period last year.

The debt ratio of central state-owned enterprises decreased by 0.3 percentage points to 67.2%, while that of local state-owned enterprises increased by 0.7 percentage points to 62.7%.

This content was produced with the assistance of AI translation services.