The establishment of China Post Group (CPG) in BeijingThursday marks the separation of the regulatory functions of the former State Post Bureau (SPB) from its business activities.
CPG sources said the group is restructuring its businesses including mail delivery services and the publication and issuance of stamps.
The new CPG group has registered capital of 80 billion yuan (10 billion U.S. dollars).
Liu Andong, former director of SPB, has been appointed general manager of CPG, and Ma Junsheng, former deputy director of SPB, has been named to head the State Post Management Bureau (SPMB).
CPG will own the China Postal Air Freight Corporation and the China Postal Savings Bank. The source said the merger of the China Postal Logistics Corporation with EMS is almost complete. The new entity will be controlled by CPG.
Traditionally both supervisor and a player in the market, SPB was placed in a difficult position when more and more companies, including overseas delivery firms, began to compete in the country's lucrative postal market.
Sources with the Shanghai Securities News said the State Post Management Bureau also began operations on Thursday.
A number of provincial Post Management Bureau agencies have been set up since September.