Profits Of Chinese State-Owned Enterprises Fell 11.6% In First Half

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Photo: By The Tenth Dragon on Flickr

China’s Ministry of Finance figures show that state-owned enterprises profits continued with the trend of slowdown.

Revenue of state-owned enterprises (excluding financial institutions) increased by 11.1% in the first half of the year compared to the same period of last year, down from 11.3% growth for the first five months of the year, while profits fell by 11.6% in the first half compared to the same period of last year, further deteriorated from 10.4% fall for the first five months of the year.

The continued deterioration of state-owned enterprises profits fit with the idea of a continued slowdown in the economy.  On top of that, we suspect that profits will remain low even if the government stimulates its economy through investment as it will further depress return on capital.

This article originally appeared here: Profits of state-owned enterprises fell 11.6% in first half
Also sprach Analyst – World & China Economy, Global Finance, Real Estate

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