Sinolight Corporation and China National Arts & Crafts (Group) Corp will become wholly owned subsidiaries of China Poly Group Corporation, said the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) on its website Monday.
The regulator added that it will not have direct supervision of these companies any more. A catalogue published on the website of SASAC also showed that the number of centrally administrated State-owned enterprises is 99 now.
An unidentified analyst told Shanghai Securities News that currently regrouping in SOEs is aimed at absorbing companies in difficulties.
This is also a market-oriented acquisition for Poly Group which had contacted other central SOEs prior to this deal and Poly's global sales network can also help the trade business of Sinolight, which runs a variety of business including paper-making, according to the finance newspaper.
China National Arts & Crafts (Group) Corp was established in 2017 after the merger of two central SOEs, China National Arts and Crafts Import & Export Corporation and the China National Arts & Grafts (Group) Corporation.
Poly Group runs business covering international trade, real estate, culture, civilian explosives production and investment in resource exploitation. Under its arm, there are four listed companies: Poly Real Estate (Group) Co Ltd, Poly Property Group Co Ltd, Poly Culture Group Co Ltd and Guizhou Jiulian Industrial Explosive Materials Development Co Ltd.