The division of Chinese state-owned companies into two classes

Following the impact of the financial crisis on China's corporations, which slashed profits in the last quarter of 2008, profits remained negative on an annualised basis for 9 months to the third quarter of this year.

By current quarter, most industries appear to have returned to profit.

But an interesting picture emerges of the new class-division of Chinese companies.

The top-performing companies are the 131 centrally-controlled companies, whose profits were up 3.4% for the year through November.

Worst performing are the Local-government-controlled companies who suffered a loss of 8.9%.

Total losses by state-owned companies were 1.9%.

The reasons for the difference in performance are interesting to speculate about, but of course no one except the Party really knows. Sphere: Related Content