Pilot mixed-ownership plan set to be unveiled

Source: Xinhua | 2017-04-13

CHINA is expected to unveil pilot mixed-ownership reform schemes for the first group of central state-owned enterprises soon amid efforts to invigorate its torpid SOEs.

The country is also preparing for a second round of pilot programs to begin later this year in more sectors, according to China Securities Journal.

China Unicom is expected to incorporate private shareholders including local Internet giants via a secondary public offering.

Trading of the company’s Shanghai-listed shares remained halted yesterday as it “deliberates on major issues,” according to a statement from China Unicom, which announced on April 5 that it was preparing for a mixed-ownership revamp.

An annual general meeting of shareholders scheduled for May 10 is likely to announce the reform plan allowing for cross-shareholding between the state-owned telco and Baidu, Alibaba and Tencent.

Introducing the Internet trio and other powerful shareholders will offer China Unicom more marketing resources and promote its business operations, according to BOC International.

The first pilot reform scheme also includes China Eastern Airlines, China Southern Power Grid, Harbin Electric Corp, China Nuclear Engineering and Construction Corp, and China Shipbuilding Industry Corp.