Report: Drastic streamlining for SOEs

Stocks surge on belief that restructuring and mergers will create globally competitive giants

The nation may slash the number of central State-owned enterprises to 40 from 112 at present through large-scale mergers as part of a broad plan to reform the inefficient State sector, a report in China's official media said on Monday.

"The reorganization will initially focus on the commercial sector, especially companies in highly competitive industries," a source told the Economic Information Daily, which is owned by Xinhua News Agency.