Chinese SOE profits grow as economy improves

BEIJING - Profits of China's State-owned enterprises (SOEs) rose 0.4 percent in the first 10 months of the year compared with a decline of 1.6 percent in the first nine months, official data showed Friday.

The SOEs made a combined profit of 1.92 trillion yuan ($277.41 billion) for January-October, the Ministry of Finance said.

Profits of SOEs under central government control fell 3.9 percent while those for locally-administered SOEs climbed 11 percent year-on-year in the same period.

The country's economy grew at a steady 6.7 percent in the third quarter, helped by an investment and a property market boom, underscoring hopes that the nation's annual growth target of 6.5 to 7 percent will be met.

Major economic indicators in the first 10 months, including fixed asset investment and industrial production, suggested the economy is stabilizing.

SOEs in coal mining, construction and auto sectors posted substantial profit increase during the first 10 months while oil, chemicals and power generation reported big drops, the ministry said.

SOE revenues increased 1.5 percent year-on-year to 36.74 trillion yuan, with the pace of growth increasing from 0.8 percent in the first nine months. Operating costs climbed 1.6 percent to 35.8 trillion yuan.