(Yicai Global) Nov. 21 - Shares in BaoshanIron & Steel[SHA:600019] and Angang Steel [SHE:000898] surged this afternoon on reports that the Baowu Steel and Ansteelare to merge.

As of 1.26 p.m., Baoshan Iron & Steel was up 2.47%to CNY7.48 (USD1.08), while Angang Steel surged 7.84%to CNY6.33.

Baowu Steel is the parent company of the Baoshan Iron & Steel and Ansteel is the parent of Angang Steel.

China is planning to merge Baowu Group and Angang Group to meet the industry consolidation targets set by the government along with Baowu Group's own future production targets in the coming years, Bloomberg reported.