On November 2, a message titled "The National Market Supervision Administration approves China United Network Communications and Tencent to establish a new mixed reform company" circulated in the market.
The source of the news is the official website of the National Market Supervision Administration, which published a list of unconditionally approved operator concentration cases from October 17 to October 23, 2022, on October 27. The document shows that the joint venture project between China United Innovation and Entrepreneurship Investment Co., Ltd. and Shenzhen Tencent Industry Venture Capital Co., Ltd. has been unconditionally approved, with a review date of October 18.
Many media outlets interpret this move as a "mixed reform," and stimulated by this news, China United Network Communications (600050.SH) $China United Network Communications (600050.SH)$quickly surged to the limit, and the Communications Services sector collectively followed suit.
On that evening, China United Network Communications announced that this cooperation was a "normal business collaboration between the company and Tencent," clearly intending to provide a "covert clarification."
In the most straightforward terms, this cooperation is essentially a partnership between China United Network Communications and Tencent. $TENCENT (00700.HK)$Both companies contributed funds to establish a joint venture. However, many investors have noted that the excessive interpretations and reactions surrounding this routine cooperation stem from an emotional response. A fund manager bluntly stated, "The market has been declining for a long time, and there is a desire for growth, looking to create some big events."
On November 3rd, under the influence of the announcement from China United Network Communications and the related clarifications, market sentiment had evidently eased. On that day...