MNI POLICY: China Airlines Hit By Virus, SOEs Return To Work

     BEIJING (MNI) - China's coronavirus outbreak caused particularly heavy

losses to airlines and tourism during the Lunar New Year holiday, but many

state-owned enterprises are returning to work, Ren Hongbin, deputy director of

the State-owned Assets Supervision and Administration Commission told a briefing

on Tuesday.

     Three state-owned airlines under SASAC supervision refunded 13 million

tickets and cancelled 78,000 flights from Jan. 20 to Feb. 13, with passenger

load and aircraft utilisation rates almost halved, said Ren, adding that the

impact is temporary and will not change economic fundamentals in the long term.

The impact was less severe in January, he said.

     Here are key takeaways from the briefing by Ren, and SASAC spokesman Peng

Huagang:

     - More than 80% of the 20,000 subsidiaries belonging to

central-government-owned enterprises' have resumed operation, said Ren.

     - Over 95% of central-government-owned enterprises involved in petroleum

and petrochemicals, telecommunications, power grids, and transportation have

resumed operation, according to Ren.

     - SASAC will not modify the production goals and reform targets set at the

beginning of the year, said Ren.

     - Central-government-owned enterprises will help small businesses with cash

shortages by reducing or exempting them from some rent payments and service

fees, according to Peng.

     - The State Grid has resumed major construction projects totalling more

than CNY70 billion, which will help the return of production in the upstream and

downstream sectors, said Peng.

     - State-owned enterprises are expanding the production of masks and

protective gowns, said Ren.

     - The epidemic has caused difficulties for foreign investment, said Peng.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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