Shanghai's state-owned enterprises continued to lead peers in other provinces and municipalities in financial performance last year.

The local SOEs' revenue gained 13 percent to 1.86 trillion yuan (US$308 billion), or one-eighth of that of local SOEs nationwide,[Hong Kong Company Formation & Registration] while profits rose 3.2 percent to 100.4 billion yuan, or one-fifth of the nation's total, according to data released by the Shanghai State-owned Assets Supervision and Administration Commission yesterday. Local SOEs are smaller state companies unlike the central SOEs directly supervised by the central government.

So far, 61 percent of Shanghai's local SOEs are in strategic emerging industries, advanced manufacturing and modern services, according to Wang Jian, chief of the Shanghai state-owned assets commission. The goal is to raise the proportion to 67 percent this year, Wang said, as the city continues to restructure the SOE sector to make it more competitive.

The commission said it disposed of all its state-owned assets last year in 118 companies that were inefficient or competitively weak.

Wang said the commission will continue to promote a mixed ownership for the SOEs this year [company registration in Hong Kong, Hong Kong company incorporation]by launching a platform dedicated to the transfer of state assets. The city will also consider allowing private franchising in some public services now controlled by the state.

Regulators last week approved private equity firm Hony Capital's investment for a 10 percent stake in Shanghai Chengtou Holding, the listed unit of the city's leading state property developer.