The assets of China’s state-owned enterprises (SOE) outside the financial industry grew 11.2% last year even as the State Council pledged to push ahead with mixed-ownership reform and accelerate restructuring in the sector amid debt concerns, reported Caixin.
China’s nonfinancial SOEs had RMB 233.9 trillion ($34.9 trillion) in assets at the end of last year, according to the latest annual review of the sector that the State Council submitted to the national legislature Thursday. The sector had total liabilities of RMB 149.8 trillion, giving it a liability-to-asset ratio of 64%, nearly unchanged from the end of 2018, said Caixin.
State-owned financial enterprises held RMB 293.2 trillion in total assets at the end of last year, up 10.9% year-on-year, the report showed. Their total liabilities rose 10.4% to RMB 262.5 trillion, leaving them with a liability-to-asset ratio of 89.5%.
China has been accelerating its push to reform SOEs, reducing leverage and taking other steps amid concerns about financial risks, across both centrally administered SOEs and local financial institutions.