The Shanghai government Wednesday named newly formed East Best Lansheng Group to manage state-owned enterprise Shanghai Foreign Economic and Trade Investment (Group) Co.

This move follows the acquisition of Shanghai Lansheng Corp by Shanghai East Best International Group last week, the city's first step toward restructuring its SOEs after it released the reform guideline for its state-owned assets. Both companies were previously held by the Shanghai State-owned Assets Supervision and Administration Commission.

The guideline aims to further optimize national resource allocation and strengthen the competitiveness of the SOEs by reducing government interference in their operation.

The new company, [Offshore Company Incorporation]East Best Lansheng International Trade Services (Group) Co, was officially formed yesterday.

The management takeover by the new group aimed to maximize the utilization of national resources. Shanghai Foreign Group's construction of four global procurement centers will synergize strongly with the new company's major businesses.