On September 19, 2011, Study Times, the publication of the Party School of the Central Committee of the CCP, published an article about the performance of China’s state-owned enterprises. It was based on a report by the Unirule Institute of Economics, a research institution in Beijing.
From 2001 to 2008, the state-owned and state holding enterprises generated a 7.68% ROE (Return on Equity), while the industrial enterprises above a designated size yielded a 9.22% ROE. Therefore, the performance of the state-owned and state holding enterprises was not good enough. After deducting the costs, government subsidies, and the excess profits due to their being administrative monopolies, it is estimated that, between 2001 and 2008, the true average ROE generated by the state-owned and state holding enterprises was -6.2%.
From 2007 to 2009, the average corporate tax paid by 992 state-owned enterprises was 10%, while the average corporate tax paid by the private enterprises was as high as 24%. In 2008, the employees of the state-owned enterprises received 13.3% more in payments than other companies, which was 12% higher than the average payment level in society. In 2009, the average annual salary of the executive management team of the central government enterprises that were listed on the stock market was 313,000 yuan (US$48,984.5), 37.3% higher than the executive management teams of regional state-owned enterprises and 61% higher than the executive management teams of private enterprises.
Source: Study Times, September 19, 2011