China is preparing policies to encourage mergers and acquisitions across eight key industry sectors including steel, automotive, rare earths and medicine, particularly by State-owned enterprises, reports said on Monday.

China National Radio cited sources within the National Development and Reform Commission, China's top economic planning body, as saying that this year and next will be a key period for M&As and that the State Council had told nine ministerial bodies, including the NDRC and the Ministry of Finance, to draft up specific policies.

CNR added that the State-owned Assets Supervision and Administration Commission will put effort into paving the way for M&As, and measures could include clarifying development strategies, improving the efficiency of combined businesses, and increasing the number of cross-border M&As.

lijiabao@chinadaily.com.cn