China's state companies report slow growth

China's state-owned companies add to fears of an economic slowdown in the country after reporting only a 2.8 percent profit growth for the first two months in 2014

China's state-owned companies add to fears of an economic slowdown in the country after reporting only a 2.8 percent profit growth for the first two months in 2014

BEIJING – State-owned companies in China have grown by only 2.8 percent in the first two months this year compared with 9.7 percent in the first two months of 2013 adding to signs of an economic slowdown in the country.

The state-owned companies made a combined profit 326.54 billion yuan (US$53.12 billion) in January-February this year, up 2.8 percent from the same period of the last year.

The companies have posted combined profits of 2.4 trillion yuan ($396.5 billion) for 2013, up 5.9 percent from 2012. Yet at the end of last year the total debt of these state-owned companies was 59.3 trillion yuan (US$9.8 trillion), a 14 percent increase on 2012. 

The most profitable sectors in the last year for China have been communication, electronic, automobile and construction.

China's economy grew 7.7 percent in 2013 its lowest growth period for 14 years, but nevertheless overshooting the government's target of 7.5 percent.

Copyright © 2014 Anadolu Agency