Reforms profit SOEs

China's State-owned enterprises registered an average 6.7 percent growth in profits year-on-year in 2016, ending the negative growth of the previous two years, statistics from the National Bureau of Statistics show.

The upward profit tendency sends the message that China's SOEs have survived the test of their accelerated reforms and there is a solid footing for pressing ahead with SOE reforms despite the harsh economic climate.

The decline in profits from 2014 to 2015 resulted in vacillation over the necessary SOE reforms. The newly recovered growth momentum, however, can demonstrate these enterprises have enhanced their ability to deal with the changing economic circumstances and challenges.