The fund raising by Unicom, a state-owned telecoms group, had sparked hopes for the mixed ownership effort, as outlined in a 2015 government plan.
HONG KONG: Shares in China Unicom Hong Kong Ltd were halted from trade on Wednesday pending the release of a statement - a suspension that comes amid market expectations of imminent reform to the ownership structure of its state-owned parent.
Parent China Unicom, formally known as China United Network Communications Group Co Ltd, is one of the world's largest mobile carriers by user numbers but has struggled in a fiercely competitive market.
Baidu Inc, JD.com, Alibaba Group Holdings and Tencent Holdings are among firms set to jointly invest about $12 billion in China Unicom's Shanghai-listed unit, China United Network Communications Ltd , people with direct knowledge of the matter have told Reuters.
The move is part of the Chinese government's drive to rejuvenate state behemoths with private capital, with China Unicom among a first batch of state-owned enterprises to see mixed-ownership reform.
The Hong Kong bourse announced the suspension from trade but did not elaborate on the reason. A representative for China Unicom Hong Kong could not be immediately reached for comment. Last month the unit said China Unicom was in talks with investors but said it had yet to reach any deal.
The Hong Kong unit, which has a market value of HK$286 billion ($36.6 billion), will report earnings later in the day. A 70 percent jump in first-half profit was flagged late on Friday.
It also forecast competition would intensify in the second half of the year.
Shares of Hong Kong-listed China Unicom have risen 32 percent so far this year, outpacing a 24 percent surge in the benchmark index.
China Mobile, the world's biggest mobile phone operator by subscribers, last week cheered investors with a special dividend and posted a 3.5 percent rise in first-half net profit. ($1 = 7.8239 Hong Kong dollars) - Reuters
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