State-owned Asset Supervision and Administration Commission of China has approved China Travel Service to be a wholly-owned subsidiary of Hong Kong China Travel Service.

Zhang Xuewu, president of HKCTS, has told local media that HKCTS's total assets will increase from the current RMB32 billion to RMB35 billion after CTS' joining and this will make the HKCTS network more extensive and its hotel services more competitive. Both brands of HKCTS and CTS Head Office will be retained.

CTS has been enjoying a good reputation in China's domestic travel industry with a well-recognized brand and successful hotel operation as well as advantages in scenic spot development. HKCTS, which was set up 80 years ago, owns a complete travel business, including 63 travel agencies in 12 countries and territories. The restructuring of the two sides is believed to be good to integrate their travel resources and boost their image as well as competitiveness in the international market.(Source:bdl)