SOEs muscle to top of Fortune list

Fortune magazine recently published its latest list of China's top 500 companies. For the ninth straight year in a row, oil giant Sinopec led the field. It was predictably followed by the usual bunch of State-owned banks and energy conglomerates that always rank among the country's most profitable enterprises. And, once again, private businesses found themselves markedly under represented.

Of the 123 companies on the list with revenues over 100 billion yuan ($16.34 billion) during the latest financial year, only 16 were privately funded. Suning Commerce Group was first within the private sector, ranking 39th overall with revenues of 232.7 billion yuan - Sinopec, by comparison, raked in 2.83 trillion yuan.

Oligarchy and monopoly are problems that cannot be ignored.

Comparing China's top companies with leading US enterprises, one sees the former excel in both revenue and asset growth. Yet, US businesses are clearly ahead when it comes to profit margins and return on investment.