Investors Interest in this Giant State-Owned Firm

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    China Unicom the giant state-owned telecom said on Sunday that the talks are on its way with the possible deliberate investors. They also said that we haven’t reached any agreements.

    The positive sign for this emerging company is that many of the top private giant companies are interested in investing in this company. Baidu and Tencent are interested in investing in this telecom company and these two giant companies would equally invest $12 billion. And this is enough money for investment for a telecom company. The eyes of all the companies and investors are on this company that what will be the future of this telecom company. This state-owned company looks attractive to the investors as well.

    This is the second biggest telecom firm in China. The reason behind the interest of the giant investors and the people is that it has its mobile phone network and internet business. This company is expanding day by day and it has more plans for the growth and success of the company. And on the stock market, the China Unicom elevated $5bn with its launch. And on the stock exchange, the Unicom shares 20% volume and this is the sign of its popularity and success.

    China economist at Capital Economics Mr. Julian Evan-Pritchard said: “Cleaning up China’s inefficient, wasteful state-owned enterprises (SOEs) is the most important reform for the long-run health of China’s economy. It’s the state sector that is holding back the economy, and [adding] to the crazy build-up of debt.”

    The debt is the cause which worried the economists but the organizations have sustained to loan to state-owned firms because they have government support. Evans-Pritchard said: “We don’t have to worry they’re safe. That’s the key assumption China is an unusual situation in most countries, you would have had a crisis by now.”

     

     

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