Rumors have been circulating about a possible merger between Sinotrans and the China Merchants Group. Sinotrans party secretary and general manager Zhao Huxiang denied the rumors on Sunday, The Beijing News reports. Zhao, who just recently was installed at the company, said that he was given no indication that a merger was in the works, and that those spreading the rumors had a misunderstanding of the way state-owned companies operate. The SASAC on 27 December last year issued a memo indicating that future plans were for Sinotrans to develop in an international direction. Link: http://economy.thebeijingnews.com/0392/2006/0206/011@158952.htm