Central State-Owned Enterprises (SOEs) in China registered steady growth in the first half of 2019. From January to June, their revenue reached 14.5 trillion yuan, a year-on-year increase of 5.9 percent, while the net profit rose 8.6 percent to 703.8 billion yuan, statistics from the State-owned Assets Supervision and Administration Commission (SASAC) showed.
Central enterprise fix-asset investment maintained a growth rate of over 7 percent. Central SOEs paid a total of 1.3 trillion yuan in taxes and fees in the first half of the year, up by 2.7 percent year-on-year.
The country’s efforts to reform central SOEs have yielded some fruits. An effective governance structure for the central SOEs has been built and the central SOEs are now more market-oriented.
The country also encourages innovation-driven central SOEs to list on the science and technology innovation board to boost their vitality. China Railway Signal & Communication Corporation Ltd., for instance, has already been registered on China’s science and technology innovation board.
The SASAC has encouraged more central SOEs that abide by national development strategies, have made breakthroughs in core technologies and are well received by the market to apply to list on the science and technology innovation board.
As of May this year, the country had cut 14,000 subsidiary legal entities and improved the productivity of central SOEs by 20 percent.