A unit of Kuang-Chi Group invested CNY4 billion ($600 million) to take a 1.88 per cent stake in China United Network Communications (CUNC), the Shanghai-listed unit of the country’s second largest mobile operator China Unicom, Reuters reported.

Technology conglomerate Kuang-Chi is one of 14 strategic investors, including Alibaba, Baidu, Tencent and state-owned China Life Insurance, which together with China Unicom staff and the China Structural Reform Fund are taking a 35 per cent stake in China Unicom as part of the government’s mixed-ownership reform effort for state-run enterprises.

Hong Kong-listed China Unicom announced last week it aims to generate CNY78 billion through a private placement.

Kuang-Chi Connection Technology said in a statement it will cooperate with CUNC in cloud computing, big data, IoT, artificial intelligence, digital content and payment finance, Reuters reported. Hong Kong-listed KuangChi Science, the group’s investment arm, said in a stock market filling it will explore ways to cooperate with CUNC.

China Unicom’s private share placement cleared the final regulatory obstacle Sunday (20 August) after the country’s securities regulator said the mixed-ownership plan doesn’t violate rules.