China's Ministry of Finance has reported a startling 95.5
percent jump on Friday in the profits of state-owned real estate
sector in the first nine months, as the country's housing prices
kept soaring in major cities despite massive housing
development.
The exact number of the industry profit is undisclosed, but the
leading state-owned property company, Poly Real Estate Group Co.,
has reported a revenue of 39 billion yuan, and its net profits has
risen 83.27 percent to 562 million yuan in the first nine months in
its quarterly report.
This number is paled by the private property company, China
Vanke Co., Ltd, who collected 1.8 billion yuan net profits in the
first half.
The surging profits is caused by the continuing boom of the
property market as National Bureau of Statistics reported a 8.2
percent increase in house prices of 70 large and medium-sized
Chinese cities in August compared with last year.
Other state-owned real estate developers enjoying the property
boom include China National Real Estate Development Group
Corporation, China OCT, COFCO Property, etc.
Together with the real estate sector, state-owned construction
companies also reported an over 90 percent increase. The profits of
state-owned steel, automobiles and oil and chemical companies all
grew by about 60 percent. The profit increase of state-owned coal
enterprises are comparatively lower, only 24.4 percent over the
same period last year.
China's state-owned enterprises (SOEs) reported a 1.2 trillion
yuan of profits, in the first three quarters, a 31.2 percent
increase over the same period last year.
The number, surpassing last year's total, is mainly contributed
by central SOEs who have made a profit of 839.15 billion yuan.
(Xinhua News Agency October 20, 2007)
