By staff reporter Li Qiyan
On November 26, the State-owned Assets Supervision and Administration Commission (SASAC), which oversees more than 150 large state-owned companies, announced that the State Council has approved the spending of 54.8 billion yuan to help state-owned firms pull through the financial crisis.
According to the SASAC, some 27 billion yuan, or about 49 percent of the budget will be spent on increasing the assets of SOEs key to the livelihood of the people and national economic security. SOEs which suffered great losses in this year's natural disasters will receive compensation of 19.63 billion yuan, or 36 percent of the budget. The budget also included 8.15 billion yuan to help SOEs support business development.
The budget has raised hopes
of substantial subsidies amongst
A manager from the State Grid Co. told Caijing that “we have heard the news.” But companies are still waiting for details of the subsidy plan from SASAC, according to the source.
“It is good news
for power companies,” said Wang Yonggang, secretary general of China Electricity
Council (CEC). According to
According to the
CEC, the snow storms at the beginning of the year resulted in a 10.5 billion
yuan loss for the State Grid Co. and a 5 billion yuan loss for Southern Grid. At the
same time, major state-owned power companies endured losses of 61.3 billion yuan
during the disaster. On top of this the May earthquake in
Moreover, with the rising price of coal, power companies’ profits have been further squeezed since the start of this year. During the first eight months, the entire coal-fired power generation industry reported a 21.6 billion yuan loss.