A big Chinese merger in the works. The China Poly Group, a real estate developer, auction house and defense industry company, will merge with Sinolight Corporation and China National Arts and Crafts Group. That's as part of China's SOE reforms. The State-owned Asset Supervision and Administration Commission announced the merger on Monday.

 

China's top policy maker, the State Council, has approved the merger plan. Sinolight and National Arts and Crafts will be subsidiaries of the China Poly Group. However, the ultimate ownership of all of the subsidiaries still belongs to the asset regulator under the State Council. Poly is backed by the government to acquire real estate assets from other SOEs. Poly now controls 105 billion US dollars worth of assets after a series of M&As since last September.