Jidian shares temporarily suspended

Jidian shares temporarily suspended trading after the midday on the 15th, which led to constant speculation by all parties in the market.

The company announced at around 5:30 in the afternoon that it received a notice from the CLP Group, the actual controller, that the CPI Group was planning to sell some of its assets to Jilin Electric, and applied for a temporary suspension.

The CLP investment plan to sell some of the assets to Jidian shares may just be a confirmation of the market's speculation that CPI will start its mixed ownership reform on Jilin Power.

As early as during the two sessions, Lu Qizhou, member of the National Committee of the Chinese People's Political Consultative Conference and general manager of the China Investment Group, said that CPI will start mixed ownership reform this year.

In addition to the Jilin Electric Power Co., Ltd.'s listed companies include CLP Yuanda, *ST Dongfeng, and the open-pit coal industry. These companies are also expected to become part of the CPI Group's mixed ownership reform.

The mixed ownership reforms of central SOEs may have come to the power sector following Shanghai Wenguang Group, PetroChina, and Sinopec.

Chi Fulin, the member of the 11th National Committee of the Chinese People's Political Consultative Conference, the chairman of the China Reform and Development Research Association, and the vice chairman of the China Economic System Reform Research Association, also recently predicted that monopoly industries such as petroleum, electricity, railways, and telecommunications will be launched soon. A number of major projects that are open to the private economy have achieved important breakthroughs in the participation of non-state-owned economies in the reform of state-owned enterprises.

For the mixed ownership reform of electric power central enterprises, a Beijing-based energy researcher said: “The mixed ownership of the electric power industry is similar to that of the oil industry. The downstream link is the key to opening up. It allows private capital to invest funds, share equity, and allow private capital to participate. Part of the project, to a certain extent, can help private capital to enter areas that were previously impossible to get into, so as to achieve the goals of openness, competition, and mixed ownership."

Earlier, Lu Qizhou, general manager of China Investment Group, also stated that China Power Investment Corporation will start a mixed ownership reform this year and will allow private equity participation in some of CPI's subsidiaries and construction projects. The share of private equity will reach one-third. This is by far the first power company in the power sector that has explicitly stated that it has initiated a mixed ownership reform.

A brokerage researcher in Beijing told reporters in this connection: “Currently, from the perspective of private capital demand, thermal power does not necessarily have to be done in cooperation with central enterprises, so CLP invests in nuclear power assets and electrolytic aluminum, as well as new energy sources. It is attractive to the public capital.” “At present, it is not yet known about the holding company’s arrangements. However, if the mixed ownership reform is involved, the business involved should be in the construction of new energy projects,” said a CPI investigator.

Another person in the industry told reporters: "CLP may be injected into its own listed companies after splitting its assets package to complete the mixed ownership reform, while the holding company will form a holding platform." CLP Group hands The listed company's resources are not limited to only one company. The resources of many listed companies also provide a platform for their mixed ownership reforms.

According to the statistics of the reporter, the listed companies under the China Power Investment Group are Shanghai Electric Power, China Power Yuanda, *ST Dongre, open-pit coal industry, and 5 power companies. The shares of the above five companies, CLP Group, were 42.84%, 54.66%, 38.05%, 69.4%, and 13.08%, respectively. Besides Cangze Power, CPI Group was the actual controller.

Among them, the main businesses of Shanghai Electric Power, *ST Dongge, and Zhangze Power are the production and sales of electricity and heat; the main business of China Power Yuanda is the treatment of waste gas, the treatment of waste water, and the environmental protection of thermal power; The industry is the production, processing and sales of coal products.

It is understood that the main three industries under the CPI Group are the power industry, the coal industry and the aluminum industry. The direction of the CPI Group's mixed ownership reform is most likely to be carried out in these major industries.