HONG KONG, Nov 2 (Reuters) – Tencent Holdings (0700.HK) and state-owned telecommunications company China Unicom (600050.SS) have received regulatory approval to form a joint venture, a public filing said on Wednesday.
The State Administration for Market Regulation approved the request, based on a list posted on its website.
The regulator first disclosed details of the still-unnamed company in September, when it released a document describing it as an entity focused on three areas: internet data centers, content delivery networks and networking. edge computing, which is the use of augmented reality and machine learning to analyze massive data.
The documents do not specify why the companies decided to start the company.
Unicom Innovation Venture Capital, a subsidiary of China Unicom, will control 48% of the new company while Shenzhen Tencent Industry Venture Capital, a subsidiary of Tencent, will control 42%, according to the document published in September. The additional 10% will go to the employees of the company, specifies this document.
Shares of China Unicom jumped 10% in Shanghai on Wednesday night, prompting a temporary suspension of trading. Trading in its Hong Kong-listed shares (0762.HK) had ended before the news broke, as the stock market there closed early due to a typhoon.
Shares of Tencent rose 1.4% in Hong Kong in afternoon trading.
Chinese media has previously described the company as a “mixed ownership reform” company.
Tencent and China Unicom declined to provide immediate comment.
Reporting by Josh Ye; Editing by Edwina Gibbs and Jane Merriman
Our standards: The Thomson Reuters Trust Principles.