Profits Plunge 58.8 Percent For China’s State-Owned Firms in First Quarter

April 19, 2020Updated: April 20, 2020

BEIJING—Total net profits earned by enterprises owned by China’s central government plunged 58.8 percent during the first three months of 2020 from a year earlier, the state assets regulator said on Monday.

The unprecedented drop was due to profit declines in the aviation, autos, tourism, and oil industries, which were ravaged by the COVID-19 crisis, Peng Huagang, a spokesman for the State-owned Assets Supervision and Administration Commission (SASAC), told a news conference in Beijing.

China will make efforts to prevent state capital-invested firms from going bankrupt, reducing pay for workers and issuing layoffs, Peng added.