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Datang expected to get 4b yuan aid for restructuring

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Fresh capital also to help pay for trials of homegrown 3G system, says report

Datang Telecom Technology and Industry Group (Datang Group), a developer of the mainland's homegrown 3G technology TD-SCDMA, is expected to receive about four billion yuan from the government to pave the way for a corporate restructuring, a newspaper reported.

The 21st Century Business Herald said yesterday the State-owned Assets Supervision and Administration Commission would be responsible for the cash injection.

Datang Group could not be reached for comment.

Last month, mainland media reported that China Mobile Communications Corp would inject three billion yuan into Datang Group, which both companies denied.

Datang Group is held by the state-owned China Academy Telecommunication Technology. It has two subsidiaries, including Shanghai-listed Datang Telecom, which focuses on telecommunications solutions and system integration business. Datang Mobile is the privately owned arm that is developing the TD-SCDMA network, technology and other related businesses.

Datang Telecom yesterday said it was aware of the report about the capital injection but had nothing to disclose. Its operations remained normal, it said.

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