China Unicom shakeup a milestone in SOE reform

Experts sees it as breakthrough for involving internet firms, employee incentive shares, mixed-ownership

The $11.7 billion share sale by China United Network Communications Group Co Ltd, the country's second-largest mobile carrier by subscribers, marks a milestone in the Chinese government's push to further rejuvenate State behemoths with private capital, signaling that a number of investment opportunities will emerge from mixed-ownership reform, experts said.

As it is the first in a batch of State-owned enterprises slated for mixed-ownership reforms, the plan disclosed by China Unicom is a great breakthrough, as it involves internet companies, employee incentive shares and enterprise governance, said Li Jin, chief researcher at the China Enterprise Research Institute.