Published on : Aug 21, 2015
The government of China is planning to revamp the nation’s telecom industry. Currently, it is in the process to identify the competitive landscape of this industry and the market hierarchy in order to place its three key telecom companies.
Mr. Xi Guohua, the chairman of the parent organization of China Mobile Ltd., is going to retire very soon. Mr. Shang Bing, the incumbent Vice Minister at the Ministry of Industry and IT, the Government of China, will take the place of Mr. Xi Guohua, as per the source.
High-level personnel changes are also scheduled at the state-owned parent companies of China Telecom Corp Ltd. and the Hong Kong-based China Unicom Ltd. All three telecom enterprises witnessed a growth in the share prices on Friday, August 21, 2015. China Telecom’s stock reported a rise of 6.9% and reached to HK$4.65, which was the highest in four months. Whereas, China Unicom recorded a surge of 3.2% and reached to HK$10.82. Lastly, China Mobile rose 2.2%, arriving at HK$100.30.
This surge in the stock prices of these telecom companies are the results of the talks being held for the biggest overhaul in the state-owned telecom companies since the late 1990s. This renovation is aimed at fueling the Chinese telecom market, which is at its slowest growth rate in 25 years.
Mr. Chang Xiaobing, the chairman of China Unicom, have reportedly skipped a press conference to be held for post-earnings discussion in Hong Kong on Aug 21st, 2015. He went to join in an important meeting scheduled in Beijing, Mr. Lu Yimin, the president of China Unicom told the press. Mr. Lu added that the telecom enterprise is yet to receive a notice pertaining to the changes in the management.
Mr. Chang also holds the chair of the state-owned parent company of China Unicom.