CNY120B relief for Chinese companies in H1

BEIJING (XINHUA) – China’s centrally-administered state-owned enterprises (SOEs) have cut prices and fees in the first half of the year, thus helping ease operational cost for the virus-hit economy by over CNY120 billion (about USD17.14 billion), according to the country’s state-asset regulator.

The central enterprises have implemented the national policies of cutting electricity and gas prices, toll fees, rent, and other fees, helping small and medium-sized enterprises rise above the COVID-19 epidemic, according to the State-owned Assets Supervision and Administration Commission (SASAC).

Two state-owned grid companies lowered the cost of customers by CNY54 billion, while three telecom operators rolled back profits by CNY42 billion in the first six months. Rent cut by central SOEs amounted to CNY4 billion.

The regulator said the central SOEs will continue to implement the supportive policies, expecting them to further cut costs in the second half of this year.

Central SOEs realised CNY438.55 billion in net profits in the January-June period, down by 37.7 per cent from the same period last year and narrowing by 12.6 percentage points compared with the decline in the first five months, SASAC data showed.