The China Tourism Group Corporation was officially established on Wednesday, with the merger of two state-owned enterprises (SOEs) under the direction of the country's state-asset watchdog.

The new company has become China's largest tourism SOE and is regulated by the State-owned Assets Supervision and Administration Commission.

Last month, the commission announced that the China International Travel Service (CITS) was no longer under its supervision as it was to become a wholly-owned subsidiary of the China National Travel Service (HK) Group Corporation (HKCTS).

Zheng Jiang, assistant to the general manager of HKCTS, said Wednesday that the business scopes of both companies complement each other as HKCTS focuses on food, hotels and traveling, while CITS excels in shopping.

However, only the direction of the reorganization is fixed, the detailed plans in terms of business, personnel and corporate structure have yet to be finalized, Zheng said.

He forecasts that tourism, the company's main business, will be reorganized in less than a year, while other business fields will be reorganized in three to five years.

The company will strive to become the top tourism company in China in the next few years, with the ultimate goal of becoming one the world's top 500 companies, said Zheng.