Shares in Chinese telecoms giant Unicom surged 10 per cent overnight after local regulators gave its £9.1bn ownership reform plan the green light.
China Unicom, which together with China Telecom and China Mobile dominates the country's telecoms sector, announced last Wednesday it had teed up more than a dozen investors including Alibaba and Tencent.
But the firm took the announcement down shortly afterwards, prompting local media to speculate whether the terms of the deal violated rules on private placements.
Overnight, however, the China Securities and Reform Commission (CSRC) issued a statement waving through the plans.
After going through the procedures with the National Development and Reform Commission and other departments, the CSRC will treat the private placement in China Unicom’s ownership reform as an exceptional case.
The firm is listed in both China and Hong Kong. The soaring share price took the company’s Hong Kong-listed stock to its highest level for two years.
An unnamed source familiar with the situation told Reuters Unicom’s announcement last week had surprised regulators.