Four Shanghai state-owned enterprises may merge to take part in China's massive homemade big plane project, Shanghai Securities News reported on April 11.

The city is expected to establish a "financial and industrial operation platform" by coordinating the resources and assets of Shanghai International Group, Shanghai State-owned Assets Cooperation Co Ltd, Shanghai Dasheng Holdings Co Ltd and Shanghai Dragon Investment Co Ltd, the report said.

Shanghai Dasheng Holdings and Shanghai Dragon Investment may merge to form a new assets company called "Guosheng," which would act on behalf of the city to join the big plane project, the report said.

An insider with China Aviation Industry Corporation I, the country's leading military aircraft maker, told Shanghai Securities News that it may participate in the project via its investment unit.

China's State Council approved the homemade big plane project in principle on March 18. The aim is to design and build a large commercial aircraft with Chinese-developed intellectual property to compete with Airbus and Boeing.

The country will finish developing the prototype of the big plane in 10 years, Zhang Yunchuan, chief of the Commission of Science Technology and Industry for National Defense, had said in an earlier report.

Zhang also said Shanghai was likely to become the assembly base of the project.

Big planes are aircraft with more than 150 seats or with a payload of over 100 tons. They include military and civilian jets.

Creating its own big planes is one of the priorities of China's long-term scientific and technological development strategy. It will sharpen the country's competitive edge in the international aviation market as well as helping to transform the nation's pattern of economic growth.

The project is also open to non-governmental investors and international cooperation in designing and manufacturing.