SOEs dominate Top 500 list

09:59, September 06, 2010      

Email | Print | Subscribe | Comments | Forum 

State-owned companies dominated the latest list of China's Top 500 Companies, but their steps toward globalization fall far behind foreign companies, experts said at a two-day summit held in Hefei, Anhui Province over the weekend.

Total revenues of the top 500 companies increased by 6.28 percent to 27.6 trillion yuan ($4.06 trillion) last year, the lowest growth rate since 2002. There are 329 State-owned companies, earning more than 80 percent of the total revenue, said a report released by the China Enterprise Confederation (CEC) and the China Enterprise Directors Association Saturday.

SinoPec led the list with a revenue of 1.39 trillion yuan ($204.33 billion) in 2009, followed by the State Grid, China National Petroleum Corporation (CNPC) and China Mobile.

After the financial crisis, the top 500 reported shrinking overseas revenue of 2.5 trillion yuan ($367.55 billion) in 2009, down 3.42 percent year-on-year.

They have outperformed both the world's and the US's top 500 companies in profits. The average profit margin of China's top 500 companies was 5.44 percent in 2009, higher than that of 4.16 percent and 4 percent for those globally and in the US.

"Chinesecompanies used to just follow multinationals, but some have become chal-lengers," said Li Jianming, vice chairman of CEC. "In the engineering, iron &steel, and electric sectors, Chinese companies' business scales have surpassed their foreign counterparts, while in the retail, auto, telecommunications and banking sectors, they're also closing the gap."

However, experts said compared with foreign companies, Chinese firms are slow going abroad. "CNPC's overseas revenues accounted for less than 3 percent of its total revenue, but Shell's overseas revenues surpassed 70 percent," said Wang Zhile, researcher within the Ministry of Commerce.

"Chinese firms made much progress in acquiring overseas assets during the crisis, but most of them lack the ability to run a global business, due to problems with resource deployment, industrial layouts and international management," said Wang Bo, managing director of Accenture Great China.

Source: Global Times

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Players of Iran throw up their coach Velasco Julio during the awarding ceremony at the 16th Asian Men's Volleyball Championship in Tehran, capital of Iran, Sept. 29, 2011. Iran won the champion after beating China 3-1 in the final on Thursday. (Xinhua/Ahmad Halabisaz)
  • Greek artists burn copies of emergency tax notices during a protest against austerity measures in Athens, Greece, on Sept. 29, 2011. The Greek government is facing a new wave of protests as it introduces new austerity measures to obtain the sixth tranche of aids necessary to overcome the acute debt crisis.(Xinhua/Marios Lolos)
  • A winner of the 36th Miss Bikini International 2011 poses for a photo at the Olympic Sailing Center in Qingdao, a coastal city of east China's Shandong Province, Sept. 29, 2011. (Xinhua/Chen Jianli)
  • Staff members are in position at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Rao Aimin)
  • Champion of Miss Bikini from Poland receives trophy at the final of the 36th Miss Bikini International World Competition in Qingdao, east China's Shandong Province, Sept. 28, 2011. (Xinhua Photo)
  • Photo taken on Sept. 28, 2011 shows autumn scenery of populus euphratica forests in Ejina Banner, north China's Inner Mongolia. The populus euphratica forests here, with an area of 390,000 mu, or 26,000 hectares, is one of the world's most famous populus euphratica forests. The golden leaves and sunshines here in autumn is able to attract more than 100,000 person-times annually. (Xinhua/Zhao Tingting)
Hot Forum Discussion