CHINA will continue to merge its biggest State-owned enterprise (SOE) groups and reduce their number this year to no more than 100, domestic media reported late Thursday.

    Mergers among Central Government-controlled SOE conglomerates were accelerating, said Peng Huagang, deputy secretary-general of the State-owned Assets Supervision and Administration Commission (SASAC), State radio said.

    The number of Central Government conglomerates, which now stands at 106, would fall to within 100 this year, Peng said.

    Ten central SOEs were in active discussions to create five groups, Peng added.

    Last September, the government launched a far-reaching reform drive aimed at improving the competitiveness of the sprawling and inefficient State-owned sector, utilizing mergers and share sales, while closing the loss-making “zombie firms.”

    Total profits for Central Government SOEs declined by 3 percent during the first half of the year, to 623.47 billion yuan (US$93.32 billion), the SASAC said, according to the report, while revenue for the companies declined by 1.8 percent to 10.8 trillion yuan for the period.

    The Ministry of Finance reported that profits for the entire State sector fell 9.6 percent during the first five months of 2016 from a year earlier, reaching 837.39 billion yuan.(SD-Agencies)