The shares of China's three telecoms fell 13%!

The shares of China's three telecoms fell 13%!
Jun 4, 2008 03:44
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	After China Telecom bought China Unicom's CDMA network, China telecoms' reshaping has formally commenced. However, the market didn't react positively. According to the news, the combined capitalisation of China Telecom, China Unicom and China Netcom slumped 13 percents, shrinking 15 billion dollars in Hong Kong market because many investors have taken profits and are afraid of future competition. Although the restructuring is line with the market's expections, yesterday's decline implicated that the government intended to cultivate more capable competitors for China Mobile, the leader of the domestic market. It is said that Beijing has promised to introduce "asymmetric regulation" that will help Telecom and the new Unicom to compete with China Mobile. How do you view the decline of the three China telecoms' shares?

Jun 4, 2008 03:44

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: offline

After China Telecom bought China Unicom's CDMA network, China telecoms' reshaping has formally commenced. However, the market didn't react positively. According to the news, the combined capitalisation of China Telecom, China Unicom and China Netcom slumped 13 percents, shrinking 15 billion dollars in Hong Kong market because many investors have taken profits and are afraid of future competition. Although the restructuring is line with the market's expections, yesterday's decline implicated that the government intended to cultivate more capable competitors for China Mobile, the leader of the domestic market. It is said that Beijing has promised to introduce "asymmetric regulation" that will help Telecom and the new Unicom to compete with China Mobile.

How do you view the decline of the three China telecoms' shares?

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