Coronavirus News Asia

Central SOEs see 1Q net profit down 59%

China’s 83 centrally-administered state-owned-enterprises (SOEs) reported a 58.8% year-on-year decline in their combined net profit to 130.4 billion yuan (US$18.4 billion) in the first quarter of this year. 

Revenue fell 11.8% to 6 trillion yuan for the period, according to the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council.

Peng Huagang, a spokesperson for the SASAC, said 57 of the 83 central SOEs recorded a decrease in their net profits, while the remaining 26 companies recorded a net loss during the first quarter.

Central SOEs faced unprecedented challenges including the novel coronavirus epidemic and slumping oil prices during the first quarter, Peng said. 

Peng emphasized that most central SOEs posted better results in March after they resumed their operations and production. He said their combined revenue reached 2.2 trillion yuan last month, roughly the same as that in January.

Last Friday, the SASAC in a video conference called on the central SOEs to beware of imported cases of Covid-19 infections and try their best to reduce the negative impact of the epidemic on their operations. 

One-year loan prime rate 

The People’s Bank of China (PBoC) announced on Monday a cut to the one-year loan prime rate (LPR) by 20 basis points, the largest reduction since the new rate was set in August 2019. It said the latest move was aimed at lowering financing costs and offsetting downward pressures from the coronavirus pandemic.

The one-year LPR was slashed to 3.85 % from 4.05%, while the five-year LPR was cut by 0.1 percentage point to 4.65%, said the PBoC.

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