China SOE profits slump further

China's state-owned enterprises (SOEs) saw their profits decline faster in the first 10 months of 2015, as they were hurt by the economic slowdown, official data showed on Friday.

SOE profits fell 9.8 percent year on year in the Jan.-Oct. period, a deeper decline than the 8.2-percent drop in the first nine months, according to figures from the Ministry of Finance.

Profits totaled 1.88 trillion yuan (294.6 billion U.S. dollars), with profits of SOEs under central government control slumping 11.3 percent to 1.35 trillion yuan.

Locally-administered SOEs reported a 6-percent decrease in profits in the first 10 months, a third consecutive fall and a sharper decline than that of 2.7 percent in the first nine months, according to the ministry.

SOEs in the areas of petrochemicals, oil refining and construction materials saw substantial profit declines, while the steel, coal and non-ferrous metal sectors continued to suffer losses. However, the profits of companies in transportation and electronics continued to improve.

SOEs have been blighted by an economic downturn that trimmed China's GDP growth to 6.9 percent in the third quarter, the lowest reading since the second quarter of 2009.

The government is trying to improve their fortunes through reform, moving towards mixed ownership and market-oriented management in the hope that this will improve their efficiency. Endi