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China Unicom says not aware of reason for share price surge in Hong Kong
03.05.08, 2:51 AM ET
HONG KONG (XFN-ASIA) - China Unicom Ltd said it was not aware of any reason for a sharp rise in its share price in Hong Kong today
At 3:15 pm, China Unicom (nyse: CHU -news - people ) shares were trading up 1.26 hkd or 7.96 pct at 17.08.
Among other mainland telecom firms, China Telecom was up 0.16 hkd or 2.88 pct at 5.72 and China Netcom was up 1.3 hkd or 5.74 pct at 23.95 while China Mobile (nyse: CHL - news - people ) was down 0.3 hkd or 0.26 pct at 113.5.
‘We… confirm that there are no negotiations or agreements relating to intended acquisitions or realisations,’ China Unicom said in a filing to the stock exchange.
Analysts attributed the sector’s gains today to expectations that the long-awaited industry restructuring on the mainland could take place soon.
Goldman Sachs (nyse: GS - news - people ) said in a note that it believes a restructuring plan could be announced in the second quarter.
Personnel changes in telecom companies could come even sooner, it said.
Analysts also pointed to reported comments by Unicom chairman Chang Xiaobing
The China Securities Journal quoted Chang as saying that the restructuring plan is now being reviewed by the state council, or China’s cabinet.
‘The restructure will be launched within this year,’ Chang was quoted as saying.
Media reports have said previously China Telecom will buy China Unicom’s CDMA business while China Unicom’s GSM business will merge with China Netcom.
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iPhone in Asia Editorial Comment: Analysts have speculated that following the reshuffle of China’s telecom industry, which is expected to happen in the near future, China Telecom will be responsible for W-CDMA network construction after it receives a 3G license to operate in the mobile industry.
DETAILS > . China Mobile pessimistic about TD-SCDMA
image courtesy BDA - http://www.bdaconnect.com:80/
