Shanghai Media and Entertainment Group and Shanghai Media Group merged on Monday, according to the newly established SMEGC's announcement.

Shanghai Media and Entertainment Group was transformed from a government-funded public institution to the State-owned Shanghai Media and Entertainment Group Co Ltd on Monday.

The State-owned Shanghai Media Group transferred its equities to the new SMEGC immediately after its establishment on the same day.

The new SMEGC will restructure the two companies' similar businesses to improve their efficiency and competitiveness according to the market needs.

A detailed plan of asset restructuring for the new listed company has not been released.

Analysts believe the transformation and merger of the two State-owned Shanghai media groups set an example for the future market reform of China's media system.