China Telecom is pressing ahead with its US$3 billion to US$4 billion initial public offering, despite widespread speculation the deal might be postponed due to bad market conditions.
China Telecom shares are expected to start trading in Hong Kong and New York on the week of November 4, a week later than planned, an underwriting syndicate source said.
China Mobile, a core telecommunications stock holding for fund managers, yesterday rose 3.1 per cent, or 55 HK cents, to finish at HK$18.90 on widespread rumours the fixed-line giant would delay its offering.
Many analysts indicated institutional investors were trimming their positions in the mainland's dominant mobile carrier before China Telecom's expected listing. The country's second listed mobile carrier, China Unicom, saw its share price edge up five HK cents or 1.08 per cent to HK$4.65.
But underwriters said China Telecom was determined to go ahead with its 16.8 billion H-share listing plan as it was a key element of its modernisation strategy linked to the country's industry de-regulation.
Ahead of the listing, China Telecom's parent, China Telecom Group, has transferred a total 13 per cent interest in the firm to funds owned by Guangdong, Zhejiang and Jiangsu provincial governments as compensation for financial support they provided in constructing the carrier's network.