Xiao Yaqing, head of the State-owned Assets Supervision and Administration Commission. [Photo provided to China Daily

Eight of China's major State-owned enterprises are being encouraged by the national assets watchdog to jointly work on key industrial projects amid a massive national push for reform in the State sector.

The companies－Aviation Industry Corp of China, China National Machinery Industry Corp (Sinomach), China Poly Group Corp, China First Heavy Industries, China North Industries Group Corp, China South Industries Group Corp, China Reform Holdings Corp Inc, and China Nuclear Engineering Construction Corp－signed restructuring contracts on Tuesday.

AVIC will transfer its real estate business to the Beijing-based Poly Group, while other companies will cooperate in areas including nuclear technologies and high-temperature machinery production.

CNEC will jointly develop the industrialization of fourth-generation nuclear technology－a high-temperature gas-cooled reactor－with China First Heavy Industries.

Sinomach, which has the world's largest forging press equipment that can produce up to 80,000 metric tons, is seeking deeper cooperation in the field of high-end forging die projects with AVIC, said Zhang Faming, director of management department at China National Heavy Machinery Corp, a subsidiary of Sinomach.

The restructuring came as China is in a striving to promote SOE reform, and boost efficiency and productivity in the State sector.

"Industrial reshuffling and resource streamlining among State-owned enterprises are absolutely necessary for structural adjustment and growth mode transformation," said Xiao Yaqing, head of the State-owned Assets Supervision and Administration Commission.

Huang Qunhui, director of the institute of industrial economics at the Chinese Academy of Social Sciences, said there had been some improvements in SOEs' performance in the first half of this year, despite the sluggish economy, as measures to cut overcapacity are put in place.

Zhong Nan contributed to this story.