Yet again, the Chinese government has shown that it is not averse to restricting investments in its companies, even when they are theoretically in private hands.
Now western governments have two reasons for questioning acquisitions of their companies by Chinese state-controlled companies. One is that there is no reciprocity and, two, that selling private companies to State-controlled ones is a form or re-nationalization, with just a different country holding the reins.
Not a good idea and, by the way, nothing much has changed with Chinese industrial policies, choose the industry you wish.
Onésimo Alvarez-Moro
See article:
Hong-Kong based investor Francis Leung has bought a controlling stake in the city's main fixed-line telecoms operator PCCW for $1.2bn (£650m).
He bought the 23% stake from chairman Richard Li, who had wanted to sell off PCCW's assets to foreign bidders.
State-run PCCW shareholder China Network Communications blocked a deal because it did not want Chinese telecoms networks in foreign hands.
Australian bank Macquarie and US firm Texas Pacific had shown interest.
The news that there would not be a bidding battle for the company's assets helped send PCCW shares down by as much as 9% on the Hong Kong Stock Exchange during Tuesday trading.
See full Article.
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