- The China Securities Regulatory Commission (CSRC) has said it will apply special treatment to China Unicom’s (CHU.NYSE) non-public shares issuance, as reported by jrj.com.
- The China Unicom fund raising has finally been formalized.
Why It Matters:
- The giant Chinese telecom company previously announced a plan to raise RMB 78 billion by issuing new A-shares. However, the official announcement disappeared from the company’s website within 24 hours and the company declined to give any formal explanation.
- Since February, the CSRC has tightened its regulation of companies which raise funds through issuing non-public shares. To the surprise of investors, the regulator said the old regulations would still apply to China Unicom, without providing further details.
- Several companies including Tencent Holdings (0700.HK), Baidu Inc. (BIDU.NASDAQ), Alibaba Group (BABA.NYSE), China Life Insurance (LFC.NYSE/601628.SS/2628.HK), Suning Commerce Group (002024.SZ), and JD.COM (JD.NASDAQ) will participate in China Unicom’s mixed-ownership reform and benefit from CSRC’s “special approval”.