Response was muted on China's capital markets to the announcement on Thursday that three of the country's major aerospace engine manufacturers are to be controlled by a new State-owned parent company - Aircraft Engine Corp of China.

In separate statements, officials said, the existing Aviation Industry Corporation of China's three listed aerospace engine subsidiaries - AVIC Aviation Engine Corp, Sichuan Chengfa Aero Science and Technology Co and AVIC Aero-Engine Controls Co, which involve around 40 entities - will be combined.

The new company, Bloomberg said, would have 145 billion yuan ($22 billion) in assets,