Shares and bonds of Chinese conglomerate CITIC Pacific surged after its state-owned parent, one of the country's biggest industrial companies, injected prime operating assets into the Hong Kong-listed firm.
In a sign that Beijing is intent on accelerating market-based economic reform, the move switches a raft of parent firm CITIC Group Corp's steel, property, banking and mining businesses out of full state control and into the glare of the private sector. The businesses made billion of dollars of profit last year for CITIC Group, which owns 57.5 percent of CITIC Pacific.
Investors sent CITIC Pacific stock as much as 30 percent higher on Thursday, welcoming the move as the most significant step taken by a central government-controlled enterprise in the current campaign to restructure Beijing's state-owned companies. It's the latest in a series of reforms planned by China to bolster the world's second-biggest economy as it slows after the blistering growth of the past decade.