The number of China's centrally-administered state-owned enterprises (SOEs) has been reduced to 126, according to a statement of the State-owned Assets Supervision and Administration Commission (SASAC).

With the State Council's approval, Shanghai Institute of Pharmaceutical Industry has been incorporated into China National Pharmaceutical Group, the country's largest pharmaceutical company by market value, according to the statement posted on the website of SASAC Monday.

The statement did not provide the reason for the consolidation.

SASAC plans to reduce the number of SOEs to between 80 and 100 by the end of 2010.

When SASAC was established in 2003, the number of SOEs was 196.