China’s SOEs Post 9.2 Percent Profit in October

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Nov. 23 – China’s Ministry of Finance has stated that the nation’s state-owned enterprises recorded an average 9.2 percent profit level in October over September’s figures, boosted in part by growing demand for vehicles and housing.

The previous ten months – November 2008 through August 2009 – had all shown a decline in profits of about 10.6 percent from the previous year. The September-October increase represents the first month on month growth for nine months.

The government has placed subsidies in position to encourage purchasing of vehicles and related machinery, while money supply to finance housing has been expanded. The ministry said that auto, petrochemicals, property development and construction industries saw the highest growth and profits margins during the month.

In terms of taxes, fiscal revenues increased by 28.4 percent, while consumption tax revenues increased by 83.8 percent year on year, indicating that China’s stimulus plan has been stoking the domestic economy and that domestic consumption is rising.