Citic Pacific yesterday assured investors that its indirect investment in cable television networks in the mainland would not be hurt by uncertainties over China's proposed rules for the industry.
Shares in the red chip fell two days running after a Beijing newspaper said China would issue new regulations to 'put in order' foreign investment in the sector.
Shares in Citic Pacific, controlled by China International Trust and Investment Corp (Citic Beijing), closed down 4.55 per cent at HK$27.25 yesterday, following a 2.23 per cent fall on Monday.
'The proposed legal framework is still unclear but our investment in Citic Guoan has received approval from Beijing and won't be adversely affected despite introduction of the new rules,' Citic Pacific managing director Henry Fan Hung-ling said.
Citic Pacific said earlier this month that the Chinese authorities had approved its proposed 1.8 billion yuan (about HK$1.6 billion) purchase from Citic Beijing of a 50 per cent stake in Guoan, which has invested in 10 cable TV networks in China.
On Monday, the People's Daily overseas edition reported that China planned to issue new rules, which would allow foreign participation in value-added telecommunications services and data transmission.
