China to restructure the telecoms sector

The Beijing authorities will soon start a reshuffle of the telecoms sector, as the final restructuring plan was being reviewed by the State Council at present, according to Chang Xiaobing, the chairman of Shanghai-listed China United Unicom<600050><762>.

He said the telecoms companies would make a move according to the rules of the Beijing markets, if the restructuring plan was announced, said Chang, and the restructuring is positive for the development of the industry and benefit consumers more.

Its H-shares jumped almost 7% to HK$16.8 on Wednesday morning.

Through the restructuring, it would create three industry giants, as China Unicom's GSM mobile business would go to China Netcom<906>, and China Telecom Corp<728> would get Unicom's CDMA arm.