China Investment Unit Buys 35% of Telecom Firm

China's State Development & Investment Corp said will invest 5 billion yuan ($687.7 million) to take a 35 percent stake in newly established Datang Telecom Technology Holding Co.

The investment, announced on the company's Web site, comes as Beijing is planning to reshuffle the country's telecoms industry in 2008, creating players that operate both wireless and fixed-line services to balance competition.

The 35 percent stake will be sold by the China Academy of Telecommunications Technology, a unit of the China's top telecoms regulator, the Ministry of Information Industry.

CATT also holds a 30.34 percent stake in listed Datang Telecom Technology Ltd, a maker of equipment for wireless networks and supports a home-grown TD-SCDMA third-generation mobile standard.

(US$=7.3 yuan)