HONG KONG -(Dow Jones)- China Mobile (Hong Kong) Ltd. (CHL) said Monday its chairman and chief executive, Wang Xiaochu, will leave his position in a major management reshuffle of China's telecom heavyweights.
China Mobile, the world's biggest mobile telecom operator, said Wang will become president of China Telecommunications Corp., the state-owned parent of the country's biggest fixed-line telecom carrier, China Telecom Corp. (CHA)
The blue-chip telecom firm said it has been notified by its controlling shareholder, state-run China Mobile Communications Corp., about the proposed adjustments to its board.
China Mobile said the proposed changes are subject to review and approval by its board. It didn't say when the changes would take effect.
China media reported Monday the management reshuffle at the companies is part of the Chinese government's efforts to prepare the telecom operators for upcoming third-generation services.
The regulator plans to switch top managers between the telecom giants to promote understanding, enhance business interconnections and reduce competition ahead of the official start of 3G services as early as next year, the reports said.
Wang Jianzhou, now chairman of China Unicom Ltd. (CHU), has been appointed chairman and chief executive of China Mobile Communications Corp.
Zhang Ligui, whom Wang Jianzhou will replace, is leaving China Mobile Communications for "reason of age."
China Netcom Group, the last of China's big four telecom firms that is expected to go public in Hong Kong and New York later this month, is also expected to be affected by the reshuffle.
-By Chan Ka Sing, Dow Jones Newswires; 852-2802-7002; ks.chan@dowjones.com
-Edited by Andrew Bullard
(END) Dow Jones Newswires "
Posted to the site on 1st November 2004
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