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Analysts said the merger will enable the State-owned giant to win more orders and gain more business in overseas cultural markets, adding that merging a relatively bigger SOE with diversified and international business interests with those with smaller assets and overlapping business might be the future direction of SOE restructuring and reform.

Analysts suggested that Chinese financial regulators would do well to consider various available options for trading bonds in default and then finalize a suitable trading system.

Andy Dunn. (Bonobos Photo)

And even if they can be found, the owners are uncooperative and resist supervision.

Angel Gurria, secretary-general of the Paris-based Organization for Economic Cooperation and Development, said he has pinned high hopes on China's reform agenda, which is people-oriented to deliver a better life for millions. "Every year I have traveled to China two or three times, and I can tangibly feel the impacts of China's reform agenda," Gurria said. "I particularly feel impressed by China's poverty-reduction efforts, which have year-by-year targets."