China’s anti-graft watchdog targets state-owned telcos

China’s anti-graft watchdog targets state-owned operators; M&A rumours denied

13 FEB 2015

China Mobile and China Telecom are among 26 large state-owned companies targeted by the Central Commission for Discipline Inspection (CCDI) after the Chinese New Year next week.

Other firms to come under scrutiny of the agency include China National Petroleum, Sinochem Group, China Ocean Shipping Co (Cosco) and Baoshan Iron & Steel Group, Reuters reported.

The anti-graft agency will inspect “all important, backbone, state-owned firms and financial institutions” this year, its website said.

More than 70 senior officials at state firms targeted by the watchdog were sacked last year, Xinhua news agency said.

The government’s Central Committee, chaired by President Xi Jinping, examined a report on the national discipline inspections at a meeting yesterday and said that “the party should be aware of the grim and complicated graft situation and combat corruption with the most determined attitude and decisive measures,” Xinhua reported.

Meanwhile the share prices of the country’s three telecoms operators rose yesterday following rumours of a merger between China Telecom and China Unicom, and China Mobile consolidating with a broadcast/cable firm.

Industry sources have denied the rumours.

The consolidation speculation sent China Unicom’s share price up 3.5 per cent yesterday on the Hong Kong Stock Exchange. China Telecom’s rose 3.1 per cent while China Mobile increased 2.5 per cent.

In trading today, both China Unicom and China Mobile shares were up about 1 per cent while China Telecom was down 1.4 per cent.

Author

Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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