China tells firms to brace for tough times: report

A Chinese government watchdog has warned major state-owned enterprises to brace for tough times given the likelihood of a worsening global economic slowdown, state media reported on Monday.

Chinese state-owned enterprises (SOEs) must pay more attention to their financial position to avoid a potential capital crunch, the Economic Observer reported, citing Li Rongrong, director of the State-owned Assets Supervision and Administration Commission.
“Keep a close watch on your pockets and do not deplete yourselves,” said Li, who talked at a recent meeting to senior executives from 150 SOEs directly controlled by the central government.

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Earnings at oil companies and power generators were worst hit, because of rising raw material costs and the government’s central pricing system for oil products and electricity tariffs, it said.

Asia Times