China Unicom shares surged 10% in Shanghai late Wednesday, prompting a temporary trading suspension.
On November 2, 2022, Tencent Holdings (0700: HK) and state-owned telecommunications company China Unicom (600050: SH) received regulatory approval to set up a joint-venture company. China Administration for Market Regulation approved the application based on a list it published on its website.
The regulator first disclosed details of the as-yet-unnamed company in September, when it published a document describing it as an entity focused on three areas: internet data centers, content delivery networks and edge computing, which is the use of augmented reality and machine learning to analyze bulk data. Unicom Innovation Venture Capital, a subsidiary of China Unicom, will control 48% of the new company, while the Shenzhen Tencent Industry Venture Capital, a subsidiary of Tencent, will control 42%. The additional 10% will go to the company's employees.
China Unicom shares surged 10% in Shanghai late Wednesday, prompting a temporary trading suspension. Trading in its Hong Kong-listed shares (0762: HK) had ended before the news emerged as the stock market there closed early due to a typhoon. Tencent's shares rose 1.4% in Hong Kong in afternoon trading.