China SOEs profit decline narrows

BEIJING - The profit decline posted by China's State-owned enterprises (SOEs) narrowed during the first seven months of the year, official data showed Monday.

Profits fell 6.5 percent year on year to 1.31 trillion yuan ($195.8 billion) during the January to July period, according to a statement by the Ministry of Finance.

The pace of decline was slower than the 8.5 percent drop registered in the first half.

SOEs fared better and their profits showed signs of stabilizing, the statement said.

Profits of SOEs under central government control dropped 9 percent while those of locally-administered SOEs edged down 0.3 percent compared with one year earlier.

SOE revenues edged up 0.2 percent to 24.88 trillion yuan, compared with a 0.1 percent drop in the first half.

SOEs in the coal, transportation, property development and pharmaceutical industries posted substantial profit growth, while the oil, petrochemical and tobacco sectors reported a plunge in profits. Steel and non-ferrous metal companies suffered losses.

An economic downturn, which trimmed China's economic growth to 6.7 percent in the first half, has put pressure on SOEs, which are at the forefront of an official drive to reform the country's growth model and cut overcapacity.