China Power Companies May Lose 70 Billion Yuan, Securities Says

By Jiang Jianguo

Dec. 23 (Bloomberg) -- China’s power producers may post 70 billion yuan ($10.2 billion) in combined losses this year because of rising costs and falling demand, the China Securities Journal reported, without saying where it obtained the information.

Some utilities are seeking financial aid from the government, the newspaper, which is affiliated with Xinhua News Agency, said. Power companies have an average debt-to-asset ratio of 60 percent to 70 percent, falling short of the more than 90 percent threshold needed to qualify for government aid, the report said, citing Wang Wei, analyst at Guotai Junan Securities Co.

To contact the reporter on this story: Jiang Jianguo in Shanghai at jjiang@bloomberg.net