China's state-owned enterprises saw profit growth accelerate in November — a sign the country's economy was becoming more stable.
Profits of the SOEs rose 2.8 percent in the first 11 months of the year to 2.11 trillion yuan ($303 billion), up from the 0.4 percent gain posted in the first 10 months, the Ministry of Finance said in a statement yesterday.
Profits of central government-controlled SOEs fell 2.8 percent in the first 11 months, narrowing from a 3.9 percent drop in the first 10 months.
Profits of locally administered SOEs jumped 16.9 percent, higher than the 11 percent growth in the first 10 months.
The profit growth has been improving since the second quarter as the State-owned Assets Supervision and Administration Commission, the SOE regulator, said this month that economic recovery, rising commodity prices and market-oriented SOE reforms helped lift their earnings.
The quicker growth is also the latest sign pointing to economic stabilization after November's economic data showed that manufacturing, inflation, trade, fixed-asset investment and industrial production picked up.
The statement said profits of SOEs in the coal, steel and construction materials sectors rose substantially during the first 11 months, while those of textiles, oil and tobacco SOEs fell sharply.
Revenues of the SOEs climbed 2.4 percent year on year to 40.79 trillion yuan, faster than the 1.5 percent expansion in the first 10 months.