BEIJING， Nov. 24 (NBD) -- China National Cotton Reserves Corporation (CNCRC) has become a wholly-owned subsidiary of China Grain Reserves Corporation (Sinograin)， China‘s state-asset watchdog said in a statement on Wednesday.

The  State-owned Assets Supervision and Administration Commission (SASAC) said the mergence was under the approval of the State Council of China.

The state cotton reserve manager “will no longer be under the direct supervision of SASAC，” the statement announced.

Officer of CNCRC told NBD reporter that the mergence， though seemed sudden， the plan actually has been brewing for more than a year.

Zhu Boshan， expert on state-owned assets， analyzed the mergence of CNCRC and Sinograin， both public welfare enterprises，  is part of the reorganization of state-owned companies in a bid to reduce costs， raise efficiency.

Sinograin is a state-owned enterprise which plays a key role in caring out state initiatives to ensure China’s food security and economic growth. Founded in 2000 with a registered capital of RMB16.68 billion， Sinograin has grown into one of the largest and most wide ranging grain storage and transportation corporations in China.

CNCRC is a wholly state-owned enterprise founded in March 2003 with the approval of the State Council. There are 20 branch companies affiliated directly to CNCRC， and more than 160 cotton depots under the corporation surveillance. Enditem