State-sector profits nothing but a mirage

“Between 2001 and 2005, private companies achieved an average return on assets of just more than 9 per cent. A weighted average of SOE returns shows that over the same period, state companies managed a return on assets of just 0.9 per cent...

State companies were able to borrow at an average interest rate of 2.55per cent, while private-sector enterprises were forced to pay 4.53per cent, almost two percentage points higher...

Not only are bloated and inefficient state companies crownding out their leaner but credit starved private-sector competitors, but by borrowing at below market rates and by playing fast and loose with repayment terms, SOEs threaten to undermine the future profitability of China’s banking sector.” Tim Holland 090504 SCMP

信貸增長過速對經濟的壞影響，在於國營企業的低盈利能力(甚至蝕錢)
和低息借款影響銀行未來的盈利能力。持有中資銀行股要考慮呢點。