BEIJING, Apr 16 (Xinhua): China's central state-owned enterprises (SOEs) saw their net profits surge 19.4 per cent in the first quarter of the year, China's top SOE regulator said Monday. The total operating revenue of central SOEs increased by 8.7 per cent year on year to 6.4 trillion yuan (about 1.02 trillion U.S. dollars) in the first quarter, according to Peng Huagang, spokesperson for the State-owned Assets Supervision and Administration Commission.
In March, central SOEs in sectors of electricity, coal, and machinery led SOE revenue growth to 2.4 trillion yuan, and monthly profit reached a new high by increasing 17.8 per cent year-on-year to 169.8 billion yuan, he said. The robust growth in profit is attributed to the steady development of China's economy, deepening supply-side reform, and corporate shake-ups that galvanize competitiveness, Peng said, calling these factors long-term stimulants for the central SOEs.
"Key economic gauges point to a steady and improving Chinese economy," he said, citing a 12.2-per cent year-on-year increase in electricity sales, a leading economic indicator, in the first quarter.
China's manufacturing purchasing managers' index, an indicator of manufacturing activity, posted an annual average of 51.6 per cent in 2017, 1.3 percentage points higher than 2016, he added. A reading of above 50 indicates expansion.
"Strong momentum and confidence in the economy paves the way for dynamic growth in production, sales, and profits of central SOEs," he said. Cutting overcapacity has contributed to the turnaround of steel-related central SOEs, which posted a 129.8 per cent year-on-year increase in profit in the first quarter, he added.
Central SOEs have combined structural reform and more investment in innovation to cultivate strategic new industries as growth engines. "We are confident and determined in pushing forward the consistent, healthy, and high-quality development of central SOEs," Peng said. Meanwhile, China approved two border tourism pilot zones as part of efforts to boost the Belt and Road Initiative and pioneer national tourism reform and innovation, according to the Ministry of Culture and Tourism Friday.
The first zone is the China-Russia-Mongolia border city of Manzhouli in north China's Inner Mongolia Autonomous Region. It has the largest number of annual exits and entries of any port along the China-Russia border, the ministry said.
Another zone, Fangchenggang in south China's Guangxi Zhuang Autonomous Region, is the largest port in west China and also the country's gateway to the waters of ASEAN countries. Express roads and railways in the region are linked with the country's transportation network. An express passenger liner between Fangchenggang and Vietnam has opened and a high-speed railway between Fangchenggang and the China-Vietnam border city of Dongxing is under construction.
The two zones will provide faster customs clearance and more convenient services for travellers who drive themselves or travel in groups. Policies on tourism investment and financing, land, and human resources will be improved and implemented, said the ministry.
China's borders stretch more than 22,000 kilometres, separating China from 14 other countries. The country earned a total of 5.4 trillion yuan (about 858.8 billion U.S.dollars) from tourism in 2017, up 15.1 per cent year on year.
China plans to raise tourism revenue to seven trillion yuan by 2020 in a bid to develop tourism as a major driver of economic transformation and upgrading.
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