China's top trainmakers, China CNR and CSR Corp, are planning to merge as the country aims to promote its high-speed train technology abroad, the China Securities Journal reported on Tuesday.

 

The state-owned firms halted trading on Monday and subsequently issued a statement saying they would resolve "major issues" as soon as possible. Trading would resume within five working days, they added.

 

CSR was founded in 2007. The company was listed on both the Shanghai and Hong Kong stock exchanges in 2008.

 

CNR was founded a year later in 2008 and was listed in the Shanghai markets in 2009.

 

According to China Securities Journal, the firms had set up working groups to discuss the integration, and that investment bank China International Capital Corp had been appointed to oversee the reorganization.

 

"The heads of CNR and CSR are in agreement on the companies' integration," the newspaper quoted an industry source.

 

Representatives of CNR and CSR were not immediately available to comment on the Journal report.

 

Last month, CNR and CSR dismissed reports that the government was looking to merge the firms to create a giant that can better compete with foreign rivals.

 

Chinese financial news magazine Caixin has reported that the nation is looking at a merger to facilitate exports of high-speed rail technology.

 

Stock trading for the two companies has been suspended in Shanghai and Hong Kong stock exchanges, pending further announcement.

 

The two companies are both listed in Shanghai and Hong Kong, with a combined market value of about $30 billion based on the closed price before trading suspension.

 

Zhuzhou CSR Times Electric, a CSR subsidiary, also suspended trading.