Leading telecom company, China Unicom has raised 78 billion yuan -- or nearly 12 billion US dollars -- from about a dozen investors, including tech giants Alibaba and Tencent. It's part of the government's push for state-owned enterprises to be revitalized with private capital. NATASHA HUSSAIN has more. 

 

The biggest deal under China's "mixed-ownership" reforms in recent years.Private investors will get a combined 35.2 percent stake in China Unicom's Shanghai-listed unit and will be allotted three seats on the board. China Unicom's shareholding in the listed unit will fall from 62 percent to 36.67.The company said in a statement that it expects the investment "to further optimise its corporate governance structure in accordance with market oriented principles". And experts say, for China Unicom, the reform could be a game-changer. 

 

XIANG LIGANG TELECOMS ANALYST "This 78 billion yuan will help China Unicom upgrade its 4G network and broadband internet infrastructures. The company may also speed up the development of its future 5G network. We also see internet companies and online retailers among the new investors. This is basically a vertical integration, and will create a new ecosystem for China Unicom to explore new businesses."

 

China announced it would prioritise "mixed ownership reform" in 2013. Its aim was to introduce private-sector vigour, expertise, fresh capital and innovation to the country's state-owned enterprises. China Unicom is one of the first to implement the reforms.But whether private companies play an active role in shaking up the state group, or simply act as passive investors remains a big question for many.