China to merge tourism operators in latest move to reform State sectors

Wednesday, 20 July 2016 00:00 - - {{hitsCtrl.values.hits}}

Beijing (Reuters): China has announced the merger of its biggest tourism groups, China International Travel Service Group Co and wholly-owned subsidiary China National Travel Service Corp, in a multi-billion dollar restructuring of the sector.

China is moving to create global champions from its highly inefficient state sector, by merging some of its biggest conglomerates while shutting other loss-making firms.

The latest merger will see China International Travel Service Corp, China International Investment Hong Kong Ltd and CTS Logistics brought together as a single entity.

The restructuring was announced on the website of the country’s state-owned assets administrator late on Monday afternoon.

Profits at state-owned enterprises declined 6.7% last year, when the government ordered the merger of its top train makers, China CNR Corp Ltd and China CSR Corp Ltd, and created one of the country’s biggest electricity producers through the merger of China Power Investment Corp and State Nuclear Power Technology Corp.