While China raises interest rates to slow down the steaming economy,
Standard & Poor's Rating Services released a report on Thursday, saying the
country's pace of economic growth is set to continue. The analysis reviews the
financial trends of the leading 100 listed companies.
According to credit analyst, John Bailey, director at Standard & Poor's,
China's domestic consumption and private investment remains strong and is
beginning to replace priming growth. He also expects the reforms in state-owned
enterprises and industrial upgrades will strengthen the country's manufacturing
sector in the long run.
Amongst the report's key findings, revenue of the top 100 corporations has
also grown significantly, reflecting strong economic growth and higher commodity
prices.
In 2003, the average revenue for the top 100 companies surged almost 30
percent, compared with 14 percent in 2002. Meanwhile, these 100 companies saw
their average return on capital improve to 16 percent from 14 percent in 2002,
with their debt to capital ratio dropping 2 percent to 23 percent.
Put together, these optimistic figures are indicative of improved efficiency
and increased profitability across the country's industrial sector.
The Standard & Poor's review expects China's drive for further growth to
continue. And the ratings agency predicts the private sector to play an
increasingly important role along with the country's restructuring of
state-owned enterprises. Enditem
