China SOE profits rise 2.8% in Jan-Nov

BEIJING - Profits of China's State-owned enterprises (SOEs) rose 2.8 percent in the first 11 months of the year compared with a growth of 0.4 percent in the first 10 months, official data showed Wednesday.

The SOEs made a combined profit of 2.11 trillion yuan ($305.8 billion) for January-November, the Ministry of Finance said.

Profits of SOEs under central government control fell 2.8 percent while those for locally-administered SOEs climbed 16.9 percent year-on-year in the same period, both better than the performances in the first 10 months.

The nation's GDP grew 6.7 percent in the first three quarters of 2016, steady with the first half and within the government's target range of between 6.5 and 7 percent for 2016.

Major economic indicators in the first 11 months, including fixed asset investment and industrial production, suggested the economy is stabilizing.

The latest Caixin General China Manufacturing Purchasing Managers' Index (PMI), a private gauge of China's manufacturing activity, also showed improvement in November.

The Caixin manufacturing PMI hit 53.1 in November from a reading of 52.4 the previous month in October. A reading above 50 indicates expansion, while anything below represents contraction.

SOEs in coal, steel and construction materials posted substantial profit increases during the first 11 months, while textiles, oil and tobacco reported major drops, the ministry said.

SOE revenues increased 2.4 percent year-on-year to 40.79 trillion yuan, with the pace of growth increasing from 1.5 percent in the first 10 months. Operating costs climbed 2.2 percent to 39.75 trillion yuan.