Vice-Premier Zhu Rongji has given his blessing to red chip Legend Holdings' plan to buy assets from its parent, company chairman Liu Chuanzhi said.
Mr Zhu would like the group to become a bellwether in the hi-tech industry and grow stronger through mergers and acquisitions, Mr Liu said.
The group would consider such deals only after making moves to further strengthen, he said.
After the latest deal, parent New Technology Developer still will have quality assets such as the Institute of Computing Technology but there are no new plans to inject assets into the listed arm.
The institute was put under the management of New Technology as a pilot scheme to improve the co-ordination between research and development effort with the production and sales operation.
Both are under the control of the Chinese Academy of Science.
