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