- The influence of rapid expansion of investment in fixed assets led to various trades showing great demand for energy, raw materials and machinery and electrical products, and to the speed of growth of heavy industry exceeding that of light industry. In 1992, the total output value of large and medium-sized heavy industrial enterprises increased by 15.9 percent, while large and medium-sized light enterprises experienced a rise of only 9.3 percent. This broke the impasse under which growth of heavy industry had kept the same pace with light industry for years. 

- The composite economic return index in 1992 was 99.98, up 4.9 percentage points over the 1991 figure. This was arrived at through the weighted method of calculating sales rate, fund interest and tax rate, net output value rate, industrial cost profit rate, labor productivity and turnover rate in large and medium-sized industrial enterprises. Economic returns were picking up on a speed model.

 - In 1992, large and medium-sized industrial enterprises generated 11.11 yuan of state interest and taxes per 100 yuan of input, an increase of 0.14 yuan over 1991, and earned profits of 4.68 yuan per 100 yuan of cost, 0.22 yuan higher than in 1991. Per capita labor productivity averaged 13,431 yuan (calculated on net output value), 2,258 yuan more than in 1991.

 - Frequency of turnover of working funds of large and medium-sized enterprises was 1.7 times, or 211 days in 1992, five days faster than in 1991, thus saving 19.9 billion yuan in funds.

 - In the second half of 1992, the State Council promulgated the Regulations Concerning Management Mechanism transformation of State-Owned Industrial Enterprises in order to enliven businesses. Their effect was reflected in the following fields : 1. An increase of retained-earnings for enterprises. In 1992, large and medium-sized enterprises retained 23.3 billion yuan, 29.4 percent more than in 1991 ; 2. Retention of more funds for depreciation and major overhauls. In 1992, large and medium-sized industrial enterprises kept 92.62 billion yuan for these purposes, 16.05 billion yuan over the previous year, or an increase of 20 percent. 3. Enhancement of enterprise ability to promote technology. Financial funds for enterprise technological development and technical-upgrading projects exceeded those of the previous year.

However, many production and managerial problems still remain in state-owned large and medium-sized enterprises.

 - Energy, raw materials and other basic industries have been developing slowly, while the processing industry has been taking off at a faster speed. This has led to an industrial structure tilted toward processing. According to statistics, the total industrial output value of large and medium-sized enterprises in 1992 was 17.1 percent up over 1991. But energy and raw materials industries increased by only 8.8 percent. In newly added output value, the processing industry made up 75.9 percent, while energy and raw materials constituted 24.1 percent. Coal production rose 0.7 percent ; petroleum and natural gas exploitation, 1.8 percent ; cooking gas and coal products, 3.4 percent ; ferrous metal mining, 4.5 percent ; non-ferrous metal mining, 7.3 percent ; chemical industry, 7.9 percent ; production and supply of electricity, steam and hot water, 8.1 percent ; petroleum-processing, 8.0 percent ; building materials and non-metal ore, 8.4 percent ; non-ferrous metal and calendar processing, 9.4 percent, and ferrous metal metallurgy and calendar processing, 13.1 percent. The processing industry experienced a substantial marginal increase. For example, the communications and transport equipment manufacturing industry rose 40.7 percent ; precision instruments and measuring instrument industry, 35.1 percent ; machinery industry, 22 percent ; metal products, 20.6 percent ; electric machinery and instruments, 19.5 percent and electronics and telecommunications equipment, 14 percent.

 - Inflation push caused by price rises in energy and raw materials has become a potential factor hindering development of the economy in 1993. Last year saw a two-digit rise for purchases of these commodities, 11 percent higher than the previous year. Among them, fuel and power rose 16.4 percent ; ferrous metals, 14.5 percent ; non-ferrous metals, 12.4 percent and building materials, 18.8 percent. This led to price hikes for other means of production.

 - Serious deficit problem. Turning losses incurred in enterprises to gains still remains an arduous task. In 1992, there were 2,854 large and medium-sized enterprises suffering deficits, 236 less than in 1991. Overall the number of enterprises suffering losses in China decreased from 24.4 percent in 1991 to 22.5 percent in 1992, a 1.9 percent drop. The volume of losses was 28.3 billion yuan, 91- million yuan more than in 1991, an increase of 3.5 percent. The deficit problem in large and medium-sized enterprises continues to rather serious. Achievement of the goals set by the State Economic and Trade Commission and Ministry of Finance whereby " The number of loss-suffering enterprises falls to 5 percent, and the volume of losses to 20 percent" is a weighty task. It will be more difficult for the six trades of coal mining, petroleum and natural gas tapping, textiles, food, production and supply of electricity, steam and hot water, and machinery manufacture. Each has 1,500 million yuan in volume of deficits, totalling 17 billion yuan or 60 percent of all deficits incurred in all enterprises. If deficit-suffering enterprises, and particularly those whose plight is the result of poor management, do not take workable measures, it will be hard to cut down losses.

 - Nearly half of the sector produced poor economic results, at lower than the average levels of the seventh Five-Year Plan (1986-1990). Though large and medium-sized enterprises somewhat improved their economic results in 1992, on the whole, margins remained depressed. The economic index reflecting results for funds in use and cost input was lower than that of the Seventh Five-Year Plan period. Fund interest and tax rates went down 2.44 percentage points ; industrial cost profit rate, 3.73 percentage points; industrial net output value, 0.71 percentage points, and frequency of turnover 0.13 times.

Settlement of the above-mentioned issues should depend on deepening reform and transformation of management mechanisms of enterprises.