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People’s Daily: Top Ten Companies That Suffered Large Losses are State Owned

People’s Daily recently reported on the final 2012 annual reports of publicly traded companies. Of those companies that suffered the largest losses, the top ten are all state-owned. These ten companies had total losses of RMB 50 billion (US$8.11 billion). They received a total of RMB 57 billion (US$9.25 billion) in government subsidies last year as well. The number one loser was China Ocean Shipping (Group) Company (COSCO), which reported a loss of RMB 9.56 billion (US$1.55 billion). The second and the third were Aluminum Corporation of China (CHALCO) and Metallurgical Corporation of China (MCC); they lost RMB 8.23 billion (US$1.33 billion) and RMB 6.95 billion (US$1.13 billion), respectively. Five of the top ten were steel companies, led by Anshan Iron and Steel, which lost RMB 4.16 billion (US$670 million). All these companies blamed the downturn in the market for their losses. However, based on a deeper study of the reports, many state-owned companies spent a large amount of money in different industries, instead of their primary ones. They especially suffered heavy losses in their stock market investments.
Source: People’s Daily, April 28, 2013