Main­land’s main tele­com firms to see top man­agers swapped

The China Post - - WORLD BUSINESS -

Main­land China will swap the heads of its top three tele­com com­pa­nies in a high stakes round of mu­si­cal chairs as spec­u­la­tion mounts over a pos­si­ble merger of the trio.

The com­pa­nies — China Uni­com, China Tele­com and China Mo­bile — are all owned and con­trolled by the Chi­nese Com­mu­nist Party, which con­trols the man­age­ment of the area’s ma­jor gov­ern­ment-run en­ter­prises with power to shuf­fle their chiefs at will.

The coun­try’s sec­ond-largest op­er­a­tor China Uni­com will be re­placed with the head of China Tele­com, ac­cord­ing to sep­a­rate com­pany state­ments posted on their web­sites, in­ten­si­fy­ing the merger spec­u­la­tion, which has been spread­ing as the gov­ern­ment tries to re­form the tightly con­trolled in­dus­try.

“A change of top man­age­ment does sig­nal (main­land) Chi­nese gov­ern­ment ac­tions and progress in push­ing re­forms,” Bloomberg In­tel­li­gence an­a­lyst Michelle Ma told Bloomberg News. “In­vestors are hop­ing the re­forms could re­vi­tal­ize growth and im­prove ef­fi­ciency in the tele­com sec­tor.”

Chang Xiaob­ing, for­mer chair­man and party chief of China Uni­com, will be­come chair­man and party chief in China Tele­com.

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