China Postal Express and Logistics Co Ltd, the State-owned express courier company, has withdrawn its application to go public amid strong competition from domestic rivals in the 198 billion yuan ($32.7 billion) express delivery market.

The State-backed firm, known as EMS, cited "strategic adjustment" issues as the major reason behind the IPO pullout, according to a company statement.

The firm has decided to fine-tune its original parent-subsidiary structure to a more effective headquarters-branch management model, the statement said.