The profit decline of stated-owned and state-holding enterprises has slowed in the previous four months, indicating that the performance of SOEs continues to improve, according to data released by the Ministry of Finance on May 25.

From January to April, the profit decline rate was -5.7 percent. Compared with the rate of -21.5 percent of from January to February, the rate of decline has slowed by 15.8 percent.

The data indicate that the performance of state-owned economies continues to improve due to a series of economic growth stabilizing polices adopted by the central government.

According to an official from the property management division of the Ministry of Finance, along with the improved performance of stated owned economies, some industries such as transportation and electronics have shown double digit growth; meanwhile, the number of loss-making industries has fallen.

Liu Shangxi, director of Research Institute for Fiscal Science of Ministry of Finance, said: "Generally speaking, the economic operation is smooth. State-owned enterprises have shown signs of stabilization and recovery."

According to Liu Shangxi, under the pressure of economic downturn, differentials in operation and growth among various industries are normal. The general situation is that more industries have been improving and fewer industries are sufferiing losses, which means that the economic restructuring in China is taking effect. Some industries have started a new phase of accelerated innovative development.

Liu also said that the decisive role of the market in resource allocation should be brought into full play, so the adjustment of industries with excess production capacity will be accelerated, and more outdated production facilities will be closed down. Alongside the transformation of business, China's economy will enter a new stage of high quality growth. 

The article is edited and translated from《国企经济运行状况继续好转》, source: People's Daily Overseas Edition, author:Li Lihui.