PROFITS at China's state-owned enterprises expanded 5.3 percent from a year earlier to 689.1 billion yuan (US$111.1 billion) in the first four months, the Ministry of Finance said today.

The pace slowed from an increase of 7.7 percent in the first quarter, reflecting uncertainties in the recovery of the world's second-largest economy.

According to the ministry, centrally-administered SOEs notched profits up 6.3 percent to 536.3 billion yuan in the January-April period, while SOEs managed by local governments reported a 14.7 percent decrease in net earnings to 152.8 billion yuan.

"China's state-owned enterprises showed stable performance on the whole against the backdrop of a weakening recovery," said Xue Jun, an analyst at CITIC Securities Co. "Centrally-administered companies are more resilient because they have more resources."
SOEs in industries such as power, electronics, trade and construction posted faster profit growth in the first four months, while those in transport, non-ferrous metals, coal and chemical industries said their profit growth eased.

China's economic recovery appeared weaker than expected. The gross domestic product expanded 7.7 percent from a year earlier in the first quarter, moderating from a pace of 7.9 percent in the final quarter of 2012.

The World Bank recently cut its 2013 growth forecast for China from 8.4 percent to 8.3 percent, citing risks in the property sector, financial system and local government liabilities.