China Unicom shares surge amid private placement plan

China Unicom has seen its shares surge by the daily limit of 10 percent on the Shanghai Stock Exchange after the state-run telecom's shares resumed trading in Shanghai and Hong Kong on Monday following a 4-month halt.

The resumption of trading follows the confirmation of a $11.7 billion USD private placement plan.

China Unicom sees its shares surge by the daily limit of 10 percent on the Shanghai Stock Exchange after it resumed trading in Shanghai and Hong Kong following a 4-month halt, August 21, 2017. [File Photo: zol.com.cn]

On August 20, 2017, China United Network Communications' Shanghai-listed unit announced that it would issue around 9 billion shares and sell them to strategic investors including Tencent, Baidu, Alibaba and state-owned China Life Insurance.

Trading in Unicom shares had been suspended since April amid the formal start of the company becoming one of the first major state-run companies in China to partner with the private sector to a create a mixed-ownership model.

The "mixed-ownership reform" is designed by the government to try to draw private capital into its state-owned enterprises.

China Unicom first revealed it was being considered for the new ownership program in October, 2016. Other state-run companies to be tapped are said to come from sectors including the railway, energy and military industries.