China’s central State-owned enterprises (SOEs) enjoyed a stable momentum in economic performance in the first quarter of this year, said the State asset regular in a press conference on April 16.

In the first quarter of this year, the revenue of central SOEs totaled 6.8 trillion yuan (about $1 trillion), a year-on-year increase of 6.3 percent. Total profits in the same period increased 13.1 percent year-on-year to 426.6 trillion yuan. In March alone, the revenue reached 2.6 trillion yuan, up 10.6 percent year-on-year, and the profit up 10.8 percent year-on-year, said Peng Huagang, the spokesperson of State-owned Assets Supervision and Administration Commission (SASAC).

The effective investment increased at a faster pace during the period. Central SOEs have realized 384.02 billion yuan of fixed asset investment (FDI), a year-on-year growth of 9.7 percent, 8.8 percentage points higher than the same period last year.

The oil and gas companies and petrochemical companies enhanced their investment in ensuring the natural gas supply and oil and gas development, with a year-on-year growth of 39.3 percent. Telecommunications companies continued to promote 5G research and development, with a year-on-year growth of 39.5 percent, Peng added.

“We focused on filling the shortboard, continued deepening supply-side structural reform and vigorously promoted high-quality development. These measures effectively improved the macro-economic environment,” Peng said.

Mixed-ownership reform is quality-oriented

Meanwhile, mixed-ownership reform is carried out steadily. China is paying more attention to the quality and effect of the reform. Peng said the country will promote the transformation of the internal operating mechanism of the enterprise as well as the adjustment of ownership structure to make the business mechanism more efficient and flexible.

Efforts should be made in this aspect, including medium-and long-term incentives, professional management systems and the marketization and differentiation in salary, etc.

Central SOEs’ contribute to the BRI

The second Belt and Road Forum for International Cooperation is scheduled to be held in China later this month. As for the engagement of central SOEs in Belt and Road Initiative (BRI), Peng said that these companies help promote the connectivity of infrastructure, the cooperation of international capacity and bring more job opportunities.

For example, the Karakoram Highway undertaken by China Communications Construction has improved the local traffic, revitalized local tourism resources, and cultivated a number of new industries such as retail and jewelry mining, said Peng.