CITIC Pacific in Tie-up Talks for China Telecoms InvestmentHong Kong listed red chip CITIC Pacific Ltd is in talks to link up with a mainland company to invest in China's telecommunications market, managing director Henry Fan Hung-ling said in a report Tuesday.The South China Morning Post quoted Fan as saying that if the proposed alliance materialises, it would strengthen CITIC Pacific's telecoms portfolio on the mainland. The report did not indicate who the mainland company is. However the move may involve CITIC reducing its stake from 60 percent to 49 percent in the fibre-optic network in China, to comply with World Trade Organisation (WTO) regulations on maximum foreign ownership. China is expected to joint the WTO later this year. CITIC Pacific is incorporated in Hong Kong, but controlled by the China International Trust and Investment Corporation (CITIC Beijing), the country's largest trust and investment firm. Talks with the mainland company have progressed smoothly and are expected to be finalized by the end of the year, Fan added. CITIC Pacific has numerous interests on the mainland covering infrastructure, power and trading investments. It also owns 25.4 percent of Hong Kong carrier Cathay Pacific. [Source: chinadaily.com.cn] |
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