BEIJING, July 9 (Xinhua) -- China Silk Corp will become part of China Poly Group Corp in the latest restructuring of stated-owned enterprise (SOE), China Daily reported on Tuesday.
This is the second move regarding the merge of centrally-administered SOEs this year and is an important part of deepening SOE reform with the layout and structure of SOEs further optimized, according to the paper.
Founded in 1992 with businesses covering over 100 countries worldwide, China Poly stressed that the group would actively conduct restructuring and integration, and improve the efficiency of resource allocation to ensure a smooth transfer of assets.
At present, China Poly has 11 secondary subsidiaries and five listed companies in both the Chinese mainland and Hong Kong, whose business covers two-thirds of the economies participating in the Belt and Road Initiative.
Established in 1946, China Silk is a large company with businesses engaged in silk, petrochemicals, fashion magazines, estate management, new materials and foreign trade.
"As China strives to build a group of world-class SOEs that lead in high-quality development, the central government has been accelerating the pace of the restructuring of its SOEs, which have similar industrial structure and products," said Zhou Lisha, a researcher at a research institute of the State-owned Assets Supervision and Administration Commission of the State Council.
Zhou added that it is practical for large-scale central SOEs to merge with smaller ones to form a bigger group to further compete with international rivals.