China Mobile faces state reorganisation in $52bn restructuring plan
China Mobile has been named as one of the state-owned companies in China that are facing restructuring, according to widely circulating reports from Beijing.
The reports come from Economic Information Daily, a newspaper published by the state news agency Xinhua.
They all say that that an enterprises restructuring fund, to be managed by the State-owned Assets Supervision and Administration Commission (SASAC), will have $52.5 billion in order to promote reforms in 10 state-owned enterprises.
No report gives the complete list of 10 companies, but all include China Mobile as one of the companies facing restructuring.
“As part of a five-year plan, the government has vowed to create innovative and globally competitive enterprises through mergers, asset swaps and management reforms,” say the reports.
China last reorganised its telecoms market in 2008 when it created three state-controlled companies – China Mobile, China Telecom and China Unicom – out of six, by merging China Netcom, China Railcom and China Satellite Communications into them.