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China's Bloated State-Owned Companies Are Hurting Its Growth

Hope is for reforms that ``significantly boost productivity''

Remember the good old days of plus 8 percent growth in China?

New research from Bloomberg Intelligence shows it could have been a reality in the first half of this year had the nation's bloated and inefficient state-owned enterprises kept pace with private firms. With SOE assets at 109 trillion yuan ($17 trillion), the scope for improved efficiency of the sector to drive stronger growth is "immense," Bloomberg economist Fielding Chen wrote in a note this week.