China to open telecom sector to private capital

China's telecom regulator on Thursday said it will encourage private capital to enter the telecommunications sector in a bid to spur the slowing economy.

Private investors will be able to invest in eight areas, including mobile communications resale, broadband services, value-added telecom services and basic operating services, the Ministry of Industry and Information Technology said.

The government will also back the telecom operators' IPO plans on domestic stock exchanges. State-owned stakes in listed operators will be further diluted, a move that is set to lure more private investment.

Private capital will be also encouraged to invest in telecom infrastructure construction and maintenance projects, the ministry added.

In addition, the operating rights of base stations and telecom towers will be allowed to be outsourced to private companies.