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Hong Kong-listed shares in China Unicom rose on Thursday after the state-run telco said its parent company is pushing forward on matters relating to ownership reforms for state-owned enterprises.
In a filing to the Hong Kong stock exchange, the company said its parent China United Network Communications “is contemplating, developing and progressing significant matters relating to the mixed ownership reform” and that this may result in a change in the shareholding structure of its Shanghai-listed affiliate.
China released plans to overhaul SOEs in 2015 including promoting mixed ownership, or the partial privatisation – though continued state control has remained a central pillar of that policy. Beijing said it would push forward with mixed ownership in industries including telecommunications, electricity, oil and gas, military equipment and civil aviation.
China Unicom is the country’s second-largest mobile carrier, reporting 264m subscribers for 2016.
The company’s shares rose as much as 3.1 per cent on resuming trading in Hong Kong, paring back to be up 0.4 per cent at HK$10.90 a share. The Hang Seng China Enterprises index is down 0.4 per cent.