Shanghai's SOEs serve as backbones of the economic development

Shanghai's state-owned enterprises have played a large role in bolstering economic and social development.

In 2021, local state-owned enterprises in the city posted total assets, operating revenues, and profits, accounting for about one-seventh, one-ninth and one-sixth of the national figures, respectively, data from Shanghai's stated-owned assets supervision and administration commission showed.

Among them, total assets of local SOEs amounted to 26.27 trillion yuan (US$3.6 trillion), up 6.9 percent year on year; their operating revenues approximated 4 trillion yuan, an increase of 6.2 percent; and the total profits rose 4.7 percent to top 352.66 billion yuan.

The gross product of local SOEs in the city added up to 1.23 trillion yuan, accounting for 28.5 percent of Shanghai's gross product, while their taxes paid amounted to 236.247 billion yuan, contributing to about 15.4 percent of the city's total local taxes.

Six SOEs in Shanghai, namely SAIC, Greenland Group, China Pacific Insurance, Pudong Development Bank, Shanghai Construction Industry and Shanghai Pharmaceutical, have made the list of the Fortune Global 500, while four SOEs, which are Shanghai Port Group, Shanghai Shentong Metro Group, Jin Jiang International Group and the Shanghai Airport Group, have entered the top three in global rankings of their industries.

A total of 17 Shanghai SOEs were among the top 500 Chinese enterprises in 2021, while seven local brands have been listed in the top 500 Asian brands, making large contributions to the economic and social development, said Bai Yanhui, chief of the Shanghai Stated-owned Assets Supervision and Administration Commission.

The city has also launched a number of action plans, encouraging local SOEs to actively participate in the construction of the new Lingang area of the Free Trade Zone and to serve the integrated development of the Yangtze River Delta, and promote the settlement in Shanghai of a number of major projects and leading enterprises.

The SOEs have played a major part in serving and safeguarding the China International Import Expo, with the SOE purchasing delegation posting a total procurement amount of US$11.39 billion, while they have also actively participated in the construction of the five "new cities," with 25 city-owned enterprises signing settlement and cooperation agreements.

On improving the layout and structure of the state-owned sector, the commission has issued opinions to optimize the layout and restructuring of the state-owned economy, laid more emphasis on three key industries, and formed a number of business groups in emerging industries and the areas regarding people's livelihood.

It posted 85 percent of new investment in strategic emerging industries, advanced manufacturing industries, modern service industries, infrastructure and livelihood safeguard areas.

The commission also highlighted its efforts to accelerate science and technology innovation. In the past three years, the enterprises included in the commission's system has posted their average annual growth of sci-tech expenditure remaining above 20 percent.

As for the development of local brands, it has actively fostered new brands, promoted brands with competitive advantages, and reactivated the old brands.

Laozihao, or time-honored brands, achieved total revenues of 105.872 billion yuan over the past three years with an average annual growth rate of 3.5 percent.