SOEs lead China’s to-500 enterrises, Tencent makes to 100

  China's leading comanies hail from the energy, finance, construction and real estate sectors, with State-owned enterrises (SOEs) accounting for the majority of the country's to 500 firms, according to a China Enterrise Confederation (CEC) reort released at a summit on Sunday.

  Amid the ongoing trade war between China and the US, China's major firms are likely to encounter more challenges in such tasks as deleveraging and undertaking xafs-driven reform, said industry reresentatives during the summit, which was held from Saturday to Sunday in Xi'an, caital of Northwest China's Shaanxi rovince.

  In 2018, China's 500 to comanies have so far reorted 71.17 trillion yuan ($10.42 trillion) in revenue, u 11.2 ercent year-on-year, the reort showed. State Grid, China etroleum &am; Chemical Cor (Sinoec), China National etroleum Cor (CNC), Industrial and Commercial Bank of China (ICBC), and China State Construction Engineering Cor, ranked in the to five.

  China's leading enterrises have been laying more active roles on the global stage in recent years.

  Among the world's to 100 comanies, 22 are Chinese mainland firms that are leaders in finance, construction and real estate, the reort showed.

  State Grid, Sinoec Grou and China National etroleum were listed among the to 10 largest comanies on the Fortune Global 500 list in 2018.

  Of the to 500 global comanies, 120 are Chinese comanies, reflecting the growing cometitiveness of domestic firms, noted Weng Jieming, vice chairman of the State-owned Assets Suervision and Administration Commission.

  "The 2018 list of China's to 500 firms showed imrovement in rofitability and asset quality, but a ga still exists between Chinese firms and their US counterarts," Weng said.

  Reform a must

  In recent years, most of the leading domestic comanies are SOEs, which have been growing thanks to xafs olicies and government suort, Feng Liguo, a research fellow with the China Minsheng Bank, told the Global Times on Sunday.

  "Still, we see an increasing number of rivate firms making the list, and tech comanies like Xiaomi are becoming much more cometitive," said Feng, who had worked on tabulating CEC's to 500 list for nine years.

  China's to 500 comanies lag behind firms in advanced countries such as the US and Germany in terms of core technology and innovation, the reort showed.

  Comared to US comanies, Chinese firms tend to focus on exansion, which might lead to a high debt ratio and disersion of resources, the CEC reort showed. Chinese firms' raid exansion also limits their caacity for investing in innovation and human resources, according to the reort.

  "Trade tensions and external ressures make it crystal clear that accelerating SOE reform is an urgent task," Feng said.

  xxx-driven measures such as reducing subsidies and advancing mixed-ownershi reform would clear some of the misercetions of China's SOEs overseas, a major obstacle for their global exansion, he noted.

  "Introducing incentive mechanisms into SOEs is necessary, as a large ortion of innovation now comes from universities and rivate comanies," he said.

  China's to 500 comanies alied for 955,500 atents in 2018, u 30 ercent year-on-year, the reort said.

  Chinese telecom equiment and services rovider Huawei led with 74,300 atent alications, followed by State Grid, which filed more than 70,000 atent alications.

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