THE government of Tianjin is in early talks to sell stakes in two of its listed technology firms to Chinese consumer electronics giant TCL Corp., according to people familiar with the matter.

The discussions involved holdings in chip devices maker Tianjin Zhonghuan Semiconductor Co. and Tianjin Printronics Circuit Corp., a printed circuit boards producer, the people said.

Tianjin’s government and TCL are still exploring options including direct stake sales or having the electronics company acquire control in the major shareholder of the two listed firms, said the people.

Tianjin Printronics shares erased earlier losses and rose as much as 5 percent in Friday afternoon trading in Shenzhen, giving it a market value of 2.6 billion yuan (US$378 million). Tianjin Zhonghuan, which has a market capitalization of about 40 billion yuan, rose as much as 2.6 percent.

TCL has been a strong backer of Tianjin’s efforts to restructure its debt and introduce private investment in State-owned companies. The Huizhou-based company in 2015 invested in Tianjin 712 Communication and Broadcasting Co., a communication equipment maker. TCL is the second-largest shareholder with a 19 percent stake in the firm. (SD-Agencies)