Economic review

Tencent shares rise following meeting on railway mixed-ownership reform

2017-07-17 16:09:00 (Beijing Time)         Global Times

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Share prices of Chinese Internet giant Tencent's Hong Kong-listed arm Tencent Holdings Ltd reached an intraday high of HK$ 288.8 ($37) per share Monday after the company was reportedly invited to take part in the mixed-ownership reform of China Railways, the national railway operator.

On Friday, Lu Dongfu, general manager of China Railway, held a meeting at the company's headquarters with visiting Tencent Holdings CEO Ma Huateng, according to the People's Railway Daily.

Lu reportedly welcomed Tencent to take part in the company's mixed-ownership reform during his meeting with Ma.

The market reacted by sending Tencent shares to the highest mark since its IPO at HK$ 288.8 per share, up 0.49 percent during this morning's trading, according to financial news portal caixin.com earlier Monday. Tencent shares stood at HK$ 286.6 per share as of press time.

China is pushing mixed-ownership reform in electricity, oil, natural gas, railway, civil aviation, telecommunications and military industries. China Railway Corp is also making progress in its mixed-ownership reform agenda.

China's mixed-ownership reform in centrally administered State-owned enterprises (SOEs) has made steady progress, the National Development and Reform Commission, the country's top economic planner, said in May.

In May also, Lu held a meeting with Jack Ma Yun, Alibaba's founder and executive chairman. This meeting also involved talks on mixed-ownership reform.