The mainland has merged Beijing Energy Investment Holding and Jingmei Group into a 200 billion yuan (HK$249.3 billion) business, in line with its policy to improve efficiency in the energy industry and reduce pollution. The merger of Beijing Energy and Jingmei, a coal supplier based in the capital, would improve electricity supply, Lin Fusheng, the head of Beijing's Assets Supervision and Administration Commission, said in a report by Xinhua yesterday. The merger took place on Sunday, said Beijing Energy, which invests in electricity projects. The new company, Beijing Energy Group, would manage coal-fired power plants, renewable-energy projects, heating supply and coal mine development, Xinhua reported. "This is in line with a national scheme to combine coal, power and heating resources to boost energy efficiency and cut pollution," said Tian Miao, an analyst with researcher North Square Blue Oak. The mainland, the world's biggest energy consumer, has said it will fight pollution amid record smog levels in cities, including Beijing and Shanghai, mostly from coal-fired power plants. President Xi Jinping, in a pact with US President Barack Obama, agreed to cap the mainland's carbon emissions by 2030 and use renewable sources for 20 per cent of the country's energy. All three publicly traded units related to the merged companies were suspended from trading yesterday. Beijing Jingneng Power, the power generation unit of Beijing Energy Investment, rose 2.2 per cent to last trade at 6.46 yuan on December 26. Beih-Property, Beijing Energy's property arm, rose 1.8 per cent to 6.37 yuan. Beijing Haohua Energy Resource, the unit of Jingmei, added 2.4 per cent to 8.91 yuan. The merged business had assets worth 200 billion yuan, which it aimed to increase to 300 billion yuan by the end of 2020, Xinhua said. Its sales target was 100 billion yuan from 60 billion yuan, the report said. The listed units of the two companies would be used to "consolidate resources", Lin said in the report, which did not give other details. On the mainland, state companies typically sell assets to their listed units to boost the attractiveness of their stocks.