Unicom fired the first shot at the mixed reform of central enterprises.

China Unicom Chairman Wang Xiaochu announced the mixed reform plan at the interim results conference on August 16, announcing that a number of strategic investors, including Tencent, Baidu, Inc., JD.com and BABA, would be introduced to subscribe for China Unicom A shares. In addition to BAT and other companies, the mixed reform also includes SUNING, DiDi Global Inc., Internet and other companies. Among them, the shareholding of the new strategic investors will rise to 35.2%, with a total consideration of 78 billion yuan. At the same time, A-share companies will also introduce an employee incentive scheme. China Unicom employees will receive 850 million shares at a price of Rmb3.79 per share.

At about 20:00 in the evening, Unicom temporarily withdrew its relevant announcement documents in A shares. In the early morning of August 17, Beijing time, Unicom issued an announcement on the Shanghai Stock Exchange, saying that due to technical reasons, the company had applied for continued suspension of trading and would disclose the non-public offering plan and other related documents and resume trading within three trading days.

13 companies are shortlisted.

China Unicom said that the overall idea of the company's pilot mixed ownership reform is to actively introduce domestic investors through the overall design, reduce the proportion of state-owned equity, and release some of the company's equity to other state-owned and non-state-owned capital. we will substantially promote the reform of mixed ownership. China Unicom's pilot project of mixed ownership reform will adopt the combination of non-public offering and transfer of old shares, introducing four categories of strategic investors who are in a leading position in the industry and have a synergistic effect with China Unicom: including large Internet companies, vertical industry leading companies, strong industrial groups and financial enterprises, domestic leading industrial funds, etc. Specifically, China Life Insurance Company Limited, Tencent, Baidu, Inc., JD.com, BABA, SUNING Yunshang, Guangqi Group, the former Haimu Fund, DiDi Global Inc. Travel, Internet Technology, user Software, Yitong Century, and China State-owned Enterprise restructuring Fund.

According to reports, before this mixed reform, the total share capital of China Unicom was about 21.197 billion shares. In the process of mixed reform, after all the transactions are completed, according to the issue ceiling, China Unicom Group holds a total of about 36.67% of the shares in the company, and the proportion of shares held by newly introduced strategic investors is about 35.19%, forming a diversified ownership structure of mixed ownership.

Li Daxiao, chief economist of British University Securities, believes that China Unicom's mixed reform has set a benchmark for the reform of state-owned enterprises, which is of great significance, and there will also be a breakthrough in the reform of state-owned enterprises in the future. With the case of China Unicom's mixed reform, there will be less pressure on other reforms. China Unicom's mixed reform has injected new vitality into state-owned enterprises, and in the future, the mixed reform of state-owned enterprises will also improve efficiency and constantly inject vitality. At the same time, there can be a better mechanism, which will also play a certain role in promoting the capital market, "says Li Daxiao.

A number of companies have issued announcements related to the mixed reform of Unicom.

China Life Insurance Company Limited clarified: the company intends to participate in the mixed reform of China Unicom, and it has been verified that the amount of foreign investment involved in the relevant matters accounts for 7.15% of the company's latest audited net assets, which does not meet the disclosure standards stipulated in the Stock listing rules of the Shanghai Stock Exchange. Investors are asked to pay attention to investment risks.

CRRC Corporation clarified: recently, some media reported that the company participated in subscribing for the shares of Unicom A-share company. The company checked the matters involved in the report. After verification, the company did not participate in the above subscription.

UFN: stocks that plan to participate in China Unicom's mixed reform will be suspended from trading today.

SUNING Yunshang: plan to participate in China Unicom mixed reform, because related matters have a greater impact on the company, the specific arrangements need to be further clarified, trading will be suspended from the 17th.

Yitong Century: plans to participate in the mixed reform of China Unicom, the trading will be suspended from now on.

Net lodging science and technology: plan to participate in China Unicom mixed reform, the trading will be suspended from now on.

SUNING Yunshang: participate in the mixed reform of Unicom stock suspension

What is mash-up?

Mixed ownership of state-owned enterprises refers to the addition of private (unofficial) capital to state-controlled enterprises to make state-owned enterprises become multi-shareholding enterprises, but still state-controlled enterprises to participate in the market competition.

At present, there are three main ways to promote the reform of mixed ownership:

1. introducing non-state-owned capital to participate in the reform of state-owned enterprises

2. introduce non-state-owned capital to participate in the reform of state-owned enterprises, and state-owned capital investment and operation companies make equity investment in non-state-owned enterprises with great development potential and good growth.

3. Explore the implementation of employee shareholding in enterprises with mixed ownership. Employee stock ownership is mainly adopted to increase capital and shares, to contribute new funds, and so on.

What are the investment opportunities brought by the mixed reform of Unicom?

CITIC: Unicom's mixed reform plan exceeds the expected three major path Nuggets opportunities.

1. China Unicom mash-up landed, and the overall plan exceeded expectations. We believe that it plays a positive role in promoting the operating entity, focusing on recommending China Unicom's Hong Kong shares and paying attention to the trading opportunities for the resumption of A-share trading. 2, the introduction of vertical industry investor business is collaborative, relying on Unicom cooperation is expected to expand its own business territory to improve profitability, focusing on the recommendation of Netcom Technology (300017) and Yitong Century. 3. For the enterprises supported by China Unicom to upgrade technical services, Tianyuan Dike (300047) and Oriental Guoxin (300166) from big data are recommended.

The national fund strategy: "mixed reform fever + Internet fever" has become the main feature of the mixed reform of central enterprises.

Li Lifeng, a national gold strategy, believes that "mixed reform + Internet fever" is becoming a major feature of the current mixed reform of central enterprises. In addition to Unicom's introduction of "BAT", from a top-down strategic perspective, it is suggested to focus on two types of investment opportunities: 1) the civil aviation department, which is expected to build a national version of the rookie network. "the National Development and Reform Commission agrees with Air China's controlling shareholders to reform the mixed ownership of air cargo logistics, which will be mixed with express logistics enterprises such as SF Express and Yuantong Express to form a new China cargo airline," Air China announced on April 24. Air China Limited

2) General Department of Iron. Railway is one of the seven industries proposed by the government to reform. Similar to the idea of implementing mixed reform in Unicom Group, the railway is exploring to promote the capitalization of high-quality assets, and has repeatedly contacted BAT giants such as "Tencent, BABA" and invited them to participate in mixed reform and asset capitalization. Tielong Logistics, Daqin Railway, Guangzhou-Shenzhen Railway and so on are expected to benefit.

Haitong: mixed reform will be the main line of state-owned enterprise reform in the second half of the year.

Jiang Chao, chief economist of Haitong, said that since 2016, the growth rate of income and profits of state-owned enterprises has rebounded month by month. The upward trend continued in 2017. In the previous month, the income of state-owned and state-controlled industrial enterprises grew by 17.2%, and their profits grew by as high as 53%, both of which far exceeded those of private enterprises. At the same time, mergers and acquisitions promote the elimination of production capacity and enhance the degree of concentration. With the merger of CNR and CNR at the end of 2014, the curtain of merger and reorganization of central enterprises began. A total of 28 central enterprises have been restructured since 2015.

In Jiang Chao's view, mixed reform will be the main line of state-owned enterprise reform in the second half of the year. From the perspective of industry distribution, the first two batches of 19 pilot enterprises cover five major areas: electric power, railway, civil aviation, telecommunications, and military industry, and the third batch will comprehensively promote pilot projects in the oil and natural gas fields. According to SASAC's briefing in June, mergers and acquisitions of state-owned enterprises will be rolled out from four major industries: steel, coal, thermal power and heavy equipment manufacturing. There is widespread overcapacity in these industries, and the only way out is to slim down, exert scale synergy and improve business efficiency through mergers and acquisitions.

Societe Generale Securities: the reform of state-owned enterprises will continue in the second half of the year.

Wang Delun, an analyst at Societe Generale Securities, said that the reform of state-owned enterprises will continue to move forward in the second half of the year, including the landing of the central enterprise restructuring plan, the introduction of the first two batches of mixed reform pilot plans, the landing of oil and gas reform construction plans, the determination of the third batch of mixed reform pilot projects, the introduction of local state reform plans, and so on. The recovery of short-term risk appetite in the market is conducive to investment opportunities related to good policies, and it is suggested that we should pay close attention to investment opportunities in the reform of state-owned enterprises.