China's public companies' profits increase by 3.9 percent in first 7 months

The profits of state-owned companies and state-affiliated holdings in China increased by 3.9 percent in the first seven months compared to the same period last year. According to a statement by the Chinese Ministry of Finance, the total profits of companies owned by the central and local governments reached 2.73 trillion yuan (approximately $370 billion) in January-July 2023. In the first seven months, operating income of state-owned companies increased by 4.3 percent on an annual basis and total profits increased by 3.9 percent, while the debt-to-asset ratio was 64.7 percent as of the end of July. It was reported that the total profits of industrial enterprises with an annual turnover of over 20 million yuan ($2.74 million) in China decreased by 15.5 percent in the January-July period compared to the previous year. While the profits of state-owned companies in the country are on a recovery trend, it is observed that private sector profits are decreasing. This situation is also reflected in investments. In the first 7 months, fixed capital investments in the public sector increased by 7.6 percent on an annual basis, while private sector investments decreased by 0.5 percent.