BEIJING - China's State-asset watchdog said Wednesday that China National Cotton Reserves Corporation will no longer be under its supervision and be merged with another State-owned company.

The State cotton reserve manager will become a wholly-owned subsidiary of China Grain Reserves Corporation (Sinograin), the State-owned Assets Supervision and Administration Commission (SASAC) said in a statement.

"China National Cotton Reserves Corporation will no longer be under the direct supervision of SASAC," the statement said.

The merger is part of the reorganization of State-owned companies in a bid to reduce costs, raise efficiency and make them more competitive.